Boston Pizza Royalties Income Fund Valuation

Is BPF.UN 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 BPF.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BPF.UN (CA$17.43) is trading below our estimate of fair value (CA$33.1)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BPF.UN?

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

The above table shows the Price to Earnings ratio for BPF.UN. This is calculated by dividing BPF.UN's market cap by their current earnings.
What is BPF.UN's PE Ratio?
PE Ratio	12.1x
Earnings	CA$30.53m
Market Cap	CA$430.94m

BPF.UN 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	10x
Enterprise Value/EBITDA	n/a
PEG Ratio	2.5x

Price to Earnings Ratio vs Peers

How does BPF.UN's PE Ratio compare to its peers?

The above table shows the PE ratio for BPF.UN 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	22.3x
PZA Pizza Pizza Royalty	14.1x	n/a	CA$437.0m
KEG.UN Keg Royalties Income Fund	38x	n/a	CA$258.6m
AW A & W Food Services of Canada	25.8x	n/a	CA$886.0m
MTY MTY Food Group	11.2x	n/a	CA$1.1b
BPF.UN Boston Pizza Royalties Income Fund	12.1x	4.9%	CA$430.9m

Price-To-Earnings vs Peers: BPF.UN is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does BPF.UN's PE Ratio compare vs other companies in the North American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BPF.UN is good value based on its Price-To-Earnings Ratio (12.1x) compared to the North American Hospitality industry average (22.1x).

Price to Earnings Ratio vs Fair Ratio

What is BPF.UN'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.

BPF.UN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.1x
Fair PE Ratio	12.6x

Price-To-Earnings vs Fair Ratio: BPF.UN is good value based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.