The Keg Royalties Income Fund

TSX:KEG.UN Stock Report

Mkt Cap: CA$266.0m

We’ve recently updated our valuation analysis.

Keg Royalties Income Fund Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

KEG.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/Revenue11x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KEG.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.3x
BPF.UN Boston Pizza Royalties Income Fund
9.7x-6.2%CA$410.7m
PZA Pizza Pizza Royalty
16.8xn/aCA$449.2m
AW.UN A&W Revenue Royalties Income Fund
16.9xn/aCA$591.2m
MTY MTY Food Group
17.9xn/aCA$1.7b
KEG.UN Keg Royalties Income Fund
37.6xn/aCA$266.0m

Price-To-Earnings vs Peers: KEG.UN is expensive based on its Price-To-Earnings Ratio (37.6x) compared to the peer average (15.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.0%
n/an/an/a

Price-To-Earnings vs Industry: KEG.UN is expensive based on its Price-To-Earnings Ratio (37.6x) compared to the North American Hospitality industry average (17.4x)


Price to Earnings Ratio vs Fair Ratio

What is KEG.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.

KEG.UN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KEG.UN's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: KEG.UN (CA$15.95) is trading below our estimate of fair value (CA$26.97)

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


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.


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