Dorel Industries Valuation

Q: What is the Fair Price of DO4B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DO4B (€2.84) is trading below our estimate of [[fair value]] (€3.92)

Is DO4B 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DO4B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DO4B (€2.84) is trading below our estimate of fair value (€3.92)

Significantly Below Fair Value: DO4B is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DO4B?

Key metric: As DO4B is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DO4B. This is calculated by dividing DO4B's market cap by their current revenue.
What is DO4B's PS Ratio?
PS Ratio	0.07x
Sales	US$1.40b
Market Cap	US$96.92m

DO4B 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	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DO4B's PS Ratio compare to its peers?

The above table shows the PS ratio for DO4B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1x
SUR Surteco Group	0.3x	4.4%	€297.7m
ACWN A.S. Création Tapeten	0.2x	2.8%	€18.7m
LEI Leifheit	0.6x	4.5%	€152.1m
ZPF Zapf Creation	3.1x	n/a	€199.4m
DO4B Dorel Industries	0.07x	4.2%	€137.1m

Price-To-Sales vs Peers: DO4B is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does DO4B's PS Ratio compare vs other companies in the European Consumer Durables Industry?

11 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.7x	5.3%
DO4B Dorel Industries	0.07x	4.2%	US$96.92m

11 Companies		Estimated Growth	Market Cap
Industry Avg.	0.7x	26.0%
DO4B Dorel Industries	0.07x	n/a	US$96.92m

No more companies

Price-To-Sales vs Industry: DO4B is good value based on its Price-To-Sales Ratio (0.1x) compared to the European Consumer Durables industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is DO4B's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DO4B PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.07x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: DO4B is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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 DO4B forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€2.84	€3.21 +12.9%	5.3%	€3.37	€3.04	n/a	2
Nov ’25	€3.44	€6.29 +82.8%	26.3%	€7.94	€4.64	n/a	2
Oct ’25	€3.72	€6.29 +69.1%	26.3%	€7.94	€4.64	n/a	2
Sep ’25	€4.22	€6.29 +49.0%	26.3%	€7.94	€4.64	n/a	2
Aug ’25	€4.54	€6.76 +48.9%	29.9%	€8.78	€4.74	n/a	2
Jul ’25	€4.64	€6.76 +45.7%	29.9%	€8.78	€4.74	n/a	2
Jun ’25	€4.66	€6.76 +45.0%	29.9%	€8.78	€4.74	n/a	2
May ’25	€4.08	€6.49 +59.1%	25.6%	€8.15	€4.83	n/a	2
Apr ’25	€4.54	€6.44 +41.9%	26.3%	€8.14	€4.75	n/a	2
Mar ’25	€4.06	€6.52 +60.6%	27.1%	€8.29	€4.75	n/a	2
Feb ’25	€4.44	€6.48 +45.9%	26.3%	€8.18	€4.77	n/a	2
Jan ’25	€4.36	€6.48 +48.6%	26.3%	€8.18	€4.77	n/a	2
Dec ’24	€3.36	€6.48 +92.8%	26.3%	€8.18	€4.77	€2.90	2
Nov ’24	€3.64	€6.62 +82.0%	26.8%	€8.40	€4.85	€3.44	2
Oct ’24	€4.02	€6.47 +61.0%	26.6%	€8.20	€4.75	€3.72	2
Sep ’24	€4.00	€6.47 +61.8%	26.6%	€8.20	€4.75	€4.22	2
Aug ’24	€4.04	€5.42 +34.1%	24.1%	€6.72	€4.11	€4.54	2
Jul ’24	€3.08	€5.47 +77.4%	24.9%	€6.82	€4.11	€4.64	2
Jun ’24	€2.96	€5.47 +84.6%	24.9%	€6.82	€4.11	€4.66	2
May ’24	€2.46	€5.48 +122.8%	25.0%	€6.85	€4.11	€4.08	2
Apr ’24	€2.57	€5.48 +113.1%	25.0%	€6.85	€4.11	€4.54	2
Mar ’24	€3.11	€6.42 +106.4%	23.7%	€7.94	€4.90	€4.06	2
Feb ’24	€3.75	€6.42 +71.4%	23.7%	€7.94	€4.90	€4.44	2
Jan ’24	€3.48	€6.42 +84.4%	23.7%	€7.94	€4.90	€4.36	2
Dec ’23	€3.51	€6.84 +94.8%	24.3%	€8.51	€5.18	€3.36	2

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