K-Bro Linen Valuation

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

KBL (CA$36.96) is trading below our estimate of [[fair value]] (CA$87.63)

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

Valuation Score

5/6

Valuation Score 5/6

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

Share Price vs Fair Value

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

Below Fair Value: KBL (CA$36.96) is trading below our estimate of fair value (CA$87.63)

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

Key Valuation Metric

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

Key metric: As KBL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KBL. This is calculated by dividing KBL's market cap by their current earnings.
What is KBL's PE Ratio?
PE Ratio	20.7x
Earnings	CA$18.72m
Market Cap	CA$386.95m

KBL 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	1.5x
Enterprise Value/EBITDA	8.5x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does KBL's PE Ratio compare to its peers?

The above table shows the PE ratio for KBL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	32x
DXT Dexterra Group	15x	39.0%	CA$425.8m
CGY Calian Group	34x	35.3%	CA$567.1m
BDI Black Diamond Group	22.5x	24.6%	CA$541.4m
GDI GDI Integrated Facility Services	56.6x	54.4%	CA$866.6m
KBL K-Bro Linen	20.7x	15.6%	CA$387.0m

Price-To-Earnings vs Peers: KBL is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (32x).

Price to Earnings Ratio vs Industry

How does KBL's PE Ratio compare vs other companies in the North American Commercial Services Industry?

8 Companies	Price / Earnings	Estimated Growth	Market Cap

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KBL is good value based on its Price-To-Earnings Ratio (20.7x) compared to the North American Commercial Services industry average (28.7x).

Price to Earnings Ratio vs Fair Ratio

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

KBL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.7x
Fair PE Ratio	19.9x

Price-To-Earnings vs Fair Ratio: KBL is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).

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 KBL 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$36.96	CA$47.67 +29.0%	3.6%	CA$50.00	CA$45.00	n/a	6
Nov ’25	CA$34.00	CA$45.83 +34.8%	3.9%	CA$48.00	CA$43.00	n/a	6
Oct ’25	CA$35.11	CA$45.83 +30.5%	3.9%	CA$48.00	CA$43.00	n/a	6
Sep ’25	CA$37.44	CA$45.83 +22.4%	3.9%	CA$48.00	CA$43.00	n/a	6
Aug ’25	CA$36.39	CA$44.92 +23.4%	6.1%	CA$48.00	CA$40.00	n/a	6
Jul ’25	CA$32.30	CA$44.92 +39.1%	6.1%	CA$48.00	CA$40.00	n/a	6
Jun ’25	CA$32.00	CA$44.92 +40.4%	6.1%	CA$48.00	CA$40.00	n/a	6
May ’25	CA$35.06	CA$44.75 +27.6%	6.0%	CA$48.00	CA$40.00	n/a	6
Apr ’25	CA$35.49	CA$44.50 +25.4%	5.6%	CA$48.00	CA$40.00	n/a	6
Mar ’25	CA$33.68	CA$43.88 +30.3%	6.3%	CA$48.00	CA$40.00	n/a	6
Feb ’25	CA$35.10	CA$43.88 +25.0%	6.3%	CA$48.00	CA$40.00	n/a	6
Jan ’25	CA$33.00	CA$43.88 +33.0%	6.3%	CA$48.00	CA$40.00	n/a	6
Dec ’24	CA$34.85	CA$43.88 +25.9%	6.3%	CA$48.00	CA$40.00	n/a	6
Nov ’24	CA$31.47	CA$43.54 +38.4%	6.0%	CA$48.00	CA$40.00	CA$34.00	6
Oct ’24	CA$31.75	CA$42.46 +33.7%	8.4%	CA$48.00	CA$36.00	CA$35.11	7
Sep ’24	CA$35.60	CA$42.46 +19.3%	8.4%	CA$48.00	CA$36.00	CA$37.44	7
Aug ’24	CA$33.65	CA$38.96 +15.8%	10.4%	CA$45.00	CA$32.75	CA$36.39	7
Jul ’24	CA$31.32	CA$38.96 +24.4%	10.4%	CA$45.00	CA$32.75	CA$32.30	7
Jun ’24	CA$31.65	CA$38.96 +23.1%	10.4%	CA$45.00	CA$32.75	CA$32.00	7
May ’24	CA$29.20	CA$37.54 +28.5%	9.5%	CA$45.00	CA$32.75	CA$35.06	7
Apr ’24	CA$27.88	CA$37.54 +34.6%	9.5%	CA$45.00	CA$32.75	CA$35.49	7
Mar ’24	CA$29.06	CA$41.00 +41.1%	9.9%	CA$47.00	CA$34.50	CA$33.68	7
Feb ’24	CA$29.14	CA$41.00 +40.7%	9.9%	CA$47.00	CA$34.50	CA$35.10	7
Jan ’24	CA$27.30	CA$41.00 +50.2%	9.9%	CA$47.00	CA$34.50	CA$33.00	7
Dec ’23	CA$29.97	CA$41.00 +36.8%	9.9%	CA$47.00	CA$34.50	CA$34.85	7
Nov ’23	CA$29.57	CA$41.79 +41.3%	9.3%	CA$47.00	CA$36.00	CA$31.47	7

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.