Zedcor Valuation

Q: What is the Fair Price of ZDC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ZDC (CA$3.43) is trading below our estimate of [[fair value]] (CA$18.61)

Is ZDC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZDC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZDC (CA$3.43) is trading below our estimate of fair value (CA$18.61)

Significantly Below Fair Value: ZDC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZDC?

Key metric: As ZDC is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ZDC. This is calculated by dividing ZDC's market cap by their current revenue.
What is ZDC's PS Ratio?
PS Ratio	11.6x
Sales	CA$28.46m
Market Cap	CA$330.40m

ZDC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	12.3x
Enterprise Value/EBITDA	102.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ZDC's PS Ratio compare to its peers?

The above table shows the PS ratio for ZDC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1x
WJX Wajax	0.2x	1.8%	CA$459.0m
REK.U Rektron Group	0.04x	n/a	US$91.6m
E Enterprise Group	3.4x	22.3%	CA$114.9m
TBL Taiga Building Products	0.3x	n/a	CA$415.6m
ZDC Zedcor	11.6x	37.9%	CA$330.4m

Price-To-Sales vs Peers: ZDC is expensive based on its Price-To-Sales Ratio (11.6x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does ZDC's PS Ratio compare vs other companies in the North American Trade Distributors Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: ZDC is expensive based on its Price-To-Sales Ratio (11.6x) compared to the North American Trade Distributors industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is ZDC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZDC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	11.6x
Fair PS Ratio	6x

Price-To-Sales vs Fair Ratio: ZDC is expensive based on its Price-To-Sales Ratio (11.6x) compared to the estimated Fair Price-To-Sales Ratio (6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZDC forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$3.43	CA$3.95 +15.2%	5.0%	CA$4.25	CA$3.75	n/a	4
Nov ’25	CA$2.94	CA$3.28 +11.7%	17.4%	CA$4.00	CA$2.60	n/a	3
Oct ’25	CA$2.25	CA$2.53 +12.2%	3.0%	CA$2.60	CA$2.45	n/a	2
Sep ’25	CA$1.71	CA$2.40 +40.4%	7.8%	CA$2.60	CA$2.15	n/a	3
Aug ’25	CA$1.54	CA$1.92 +24.5%	4.4%	CA$2.00	CA$1.80	n/a	3
Jul ’25	CA$1.32	CA$1.72 +30.1%	9.9%	CA$1.95	CA$1.55	n/a	3
Jun ’25	CA$1.20	CA$1.72 +43.1%	9.9%	CA$1.95	CA$1.55	n/a	3
May ’25	CA$1.17	CA$1.45 +23.9%	12.9%	CA$1.70	CA$1.25	n/a	3
Apr ’25	CA$1.03	CA$1.05 +1.9%	4.8%	CA$1.10	CA$1.00	n/a	2
Mar ’25	CA$0.61	CA$1.05 +72.1%	4.8%	CA$1.10	CA$1.00	n/a	2
Feb ’25	CA$0.59	CA$1.05 +78.0%	4.8%	CA$1.10	CA$1.00	n/a	2
Jan ’25	CA$0.58	CA$1.05 +81.0%	4.8%	CA$1.10	CA$1.00	n/a	2
Dec ’24	CA$0.62	CA$1.05 +69.4%	4.8%	CA$1.10	CA$1.00	n/a	2

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Doman Building Materials Group

CA$810.9m

Through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada.

DBM

CA$9.29

2.9%

43.4%

Bird Construction

CA$1.6b

Provides construction services in Canada.

BDT

CA$29.39

5.0%

149.3%

Bombardier

CA$9.3b

Engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide.

BBD.B

CA$94.18

0.3%

84.0%