Keep Valuation

Is WZ2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 WZ2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate WZ2's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate WZ2's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WZ2?

Key metric: As WZ2 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for WZ2. This is calculated by dividing WZ2's market cap by their current revenue.
What is WZ2's PS Ratio?
PS Ratio	1.1x
Sales	CN¥2.19b
Market Cap	CN¥2.43b

WZ2 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	0.4x
Enterprise Value/EBITDA	-3.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does WZ2's PS Ratio compare to its peers?

The above table shows the PS ratio for WZ2 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	2.7x
IFA LS Invest	2.3x	n/a	€296.1m
HTG HomeToGo	1.2x	13.6%	€244.0m
TIMA ZEAL Network	6.2x	12.9%	€935.6m
EWCZ European Wax Center	1.2x	3.2%	US$335.4m
WZ2 Keep	1.1x	7.6%	€2.6b

Price-To-Sales vs Peers: WZ2 is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (2.7x).

Price to Sales Ratio vs Industry

How does WZ2's PS Ratio compare vs other companies in the European Consumer Services Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: WZ2 is expensive based on its Price-To-Sales Ratio (1.1x) compared to the European Consumer Services industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is WZ2'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.

WZ2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.1x
Fair PS Ratio	0.8x

Price-To-Sales vs Fair Ratio: WZ2 is expensive based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

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.