Singapore Technologies Engineering Ltd

DB:SJX Stock Report

Market Cap: €9.9b

Singapore Technologies Engineering Valuation

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

Below Fair Value: SJX (€3.12) is trading below our estimate of fair value (€5.16)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SJX. This is calculated by dividing SJX's market cap by their current earnings.
What is SJX's PE Ratio?
PE Ratio21.8x
EarningsS$642.38m
Market CapS$14.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SJX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
MTX MTU Aero Engines
23.8x11.1%€16.8b
RHM Rheinmetall
39.3x29.0%€26.9b
OHB OHB
12.8x11.0%€892.5m
FQT Frequentis
18.9x14.9%€323.8m
SJX Singapore Technologies Engineering
21.8x11.9%€14.0b

Price-To-Earnings vs Peers: SJX is good value based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does SJX's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SJX 21.8xIndustry Avg. 24.3xNo. of Companies9PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SJX is good value based on its Price-To-Earnings Ratio (21.8x) compared to the European Aerospace & Defense industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is SJX'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.

SJX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.8x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: SJX is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

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 SJX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.12
€3.54
+13.6%
5.5%€3.81€3.14n/a13
Nov ’25€3.09
€3.50
+13.3%
4.2%€3.73€3.27n/a13
Oct ’25€3.20
€3.47
+8.5%
3.8%€3.71€3.25n/a13
Sep ’25€3.04
€3.40
+11.6%
3.0%€3.57€3.20n/a13
Aug ’25€3.03
€3.20
+5.7%
5.9%€3.55€2.87n/a13
Jul ’25€2.90
€3.12
+7.8%
4.4%€3.37€2.89n/a13
Jun ’25€2.78
€3.08
+11.1%
4.6%€3.35€2.87n/a13
May ’25€2.73
€3.02
+10.9%
5.9%€3.29€2.58n/a13
Apr ’25€2.70
€3.02
+11.9%
5.9%€3.29€2.58n/a13
Mar ’25€2.78
€3.02
+8.8%
5.9%€3.30€2.58n/a13
Feb ’25€2.62
€2.97
+13.2%
5.7%€3.23€2.57n/a13
Jan ’25€2.62
€2.97
+13.3%
5.6%€3.25€2.59n/a13
Dec ’24€2.50
€2.96
+18.5%
5.6%€3.24€2.58n/a13
Nov ’24€2.56
€2.92
+14.0%
9.4%€3.27€2.18€3.0913
Oct ’24€2.68
€2.92
+8.9%
9.4%€3.27€2.18€3.2013
Sep ’24€2.62
€2.83
+7.9%
9.4%€3.20€2.13€3.0412
Aug ’24€2.54
€2.72
+7.1%
9.7%€3.12€2.14€3.0312
Jul ’24€2.48
€2.75
+10.8%
9.6%€3.16€2.16€2.9012
Jun ’24€2.56
€2.75
+7.3%
9.6%€3.16€2.16€2.7812
May ’24€2.44
€2.75
+12.7%
9.3%€3.15€2.15€2.7313
Apr ’24€2.50
€2.79
+11.5%
9.4%€3.19€2.18€2.7014
Mar ’24€2.48
€2.85
+14.8%
7.4%€3.22€2.28€2.7814
Feb ’24€2.56
€2.90
+13.1%
8.6%€3.33€2.29€2.6214
Jan ’24€2.38
€2.90
+21.7%
8.6%€3.33€2.29€2.6214
Dec ’23€2.50
€2.94
+17.5%
9.3%€3.34€2.30€2.5014
Nov ’23€2.38
€3.00
+26.1%
8.6%€3.36€2.47€2.5614

Analyst Forecast: Target price is less than 20% higher than the current share price.

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