Standard Mercantile Acquisition Corp.

TSX:SMA Stock Report

Market Cap: CA$1.8m

Standard Mercantile Acquisition Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMA (CA$0.25) is trading below our estimate of fair value (CA$1.19)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SMA. This is calculated by dividing SMA's market cap by their current earnings.
What is SMA's PE Ratio?
PE Ratio4.5x
EarningsCA$408.89k
Market CapCA$1.82m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.6x
BLAZ.P Trail Blazing Ventures
30.8xn/aCA$1.8m
MKZ.UN Mackenzie Master Limited Partnership
6.1xn/aCA$3.2m
ZC Zimtu Capital
2xn/aCA$2.2m
MONA.P Monarch West Ventures
23.3xn/aCA$1.0m
SMA Standard Mercantile Acquisition
4.5xn/aCA$1.8m

Price-To-Earnings vs Peers: SMA is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (47.5x).

Price to Earnings Ratio vs Industry

How does SMA's PE Ratio compare vs other companies in the CA Capital Markets Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INXD INX Digital Company
0.3xn/aUS$12.67m
MAR.UN Marwest Apartment Real Estate Investment Trust
0.9xn/aUS$11.02m
CSOC.A Canso Select Opportunities
2.3xn/aUS$9.59m
PXI Planet Ventures
1.7xn/aUS$4.47m
SMA 4.5xIndustry Avg. 11.4xNo. of Companies8PE01224364860+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SMA is good value based on its Price-To-Earnings Ratio (4.5x) compared to the Canadian Capital Markets industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is SMA'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.

SMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.5x
Fair PE Ration/a

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

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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