SJM Holdings Valuation

Is 3MG1 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 3MG1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3MG1 (€1.21) is trading below our estimate of fair value (€3.56)

Significantly Below Fair Value: 3MG1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3MG1?

Key metric: As 3MG1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3MG1. This is calculated by dividing 3MG1's market cap by their current revenue.
What is 3MG1's PS Ratio?
PS Ratio	0.7x
Sales	HK$26.06b
Market Cap	HK$18.32b

3MG1 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	1.7x
Enterprise Value/EBITDA	15.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 3MG1's PS Ratio compare to its peers?

The above table shows the PS ratio for 3MG1 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	2.2x
TIMA ZEAL Network	6.3x	12.9%	€944.3m
TUI1 TUI	0.2x	3.8%	€3.9b
EMH pferdewetten.de	1.3x	27.1%	€26.8m
DHER Delivery Hero	1x	11.1%	€11.2b
3MG1 SJM Holdings	0.7x	8.4%	€18.3b

Price-To-Sales vs Peers: 3MG1 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does 3MG1's PS Ratio compare vs other companies in the DE Hospitality Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
MS1 Marley Spoon Group	0.08x	10.0%	US$14.42m
9UX Hostmore	0.0006x	n/a	US$138.43k

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 3MG1 is good value based on its Price-To-Sales Ratio (0.7x) compared to the European Hospitality industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is 3MG1'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.

3MG1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	1.8x

Price-To-Sales vs Fair Ratio: 3MG1 is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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.