Canaf Investments Valuation

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

CAF (CA$0.32) is trading below our estimate of [[fair value]] (CA$0.53)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: CAF (CA$0.32) is trading below our estimate of fair value (CA$0.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CAF. This is calculated by dividing CAF's market cap by their current earnings.
What is CAF's PE Ratio?
PE Ratio	6.4x
Earnings	CA$2.38m
Market Cap	CA$15.18m

CAF 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	0.3x
Enterprise Value/EBITDA	2.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CAF 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	3.5x
RXM Rockex Mining	5.6x	n/a	CA$1.3m
DRX ADF Group	5.5x	5.7%	CA$289.2m
AUAG Auxico Resources Canada	0.8x	n/a	CA$11.7m
OCI Orecap Invest	2.2x	n/a	CA$16.1m
CAF Canaf Investments	6.4x	n/a	CA$15.2m

Price-To-Earnings vs Peers: CAF is expensive based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (3.5x).

Price to Earnings Ratio vs Industry

How does CAF's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

35 Companies	Price / Earnings	Estimated Growth	Market Cap
SLI Standard Lithium	2.9x	n/a	US$324.68m
QRC Queen's Road Capital Investment	2.5x	n/a	US$270.44m
APM Andean Precious Metals	2.4x	-42.9%	US$134.77m
THX Thor Explorations	3.9x	9.9%	US$131.55m

35 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CAF is good value based on its Price-To-Earnings Ratio (6.4x) compared to the Canadian Metals and Mining industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is CAF'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.

CAF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CAF'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.

Discover undervalued companies

B2Gold

CA$5.1b

Operates as a gold producer company.

BTO

CA$3.92

4.5%

-6.2%

Chemtrade Logistics Income Fund

CA$1.4b

Offers industrial chemicals and services in Canada, the United States, and South America.

CHE.UN

CA$11.50

4.5%

31.4%

Interfor

CA$983.8m

Produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and internationally.

IFP

CA$19.12

-1.8%

-15.7%