Sasol Limited

DB:SAOA Stock Report

Market Cap: €3.0b

Sasol Valuation

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

Below Fair Value: SAOA (€5) is trading below our estimate of fair value (€5.07)

Significantly Below Fair Value: SAOA is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SAOA. This is calculated by dividing SAOA's market cap by their current revenue.
What is SAOA's PS Ratio?
PS Ratio0.2x
SalesR275.11b
Market CapR58.03b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SAOA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
LXS LANXESS
0.3x2.8%€2.1b
BAS BASF
0.6x4.4%€37.6b
WCH Wacker Chemie
0.6x5.2%€3.5b
FPE3 Fuchs
1.6x3.7%€5.1b
SAOA Sasol
0.2x3.1%€58.0b

Price-To-Sales vs Peers: SAOA is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does SAOA's PS Ratio compare vs other companies in the European Chemicals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.0x4.3%
SAOA Sasol
 0.2x3.1%US$3.19b
SAOA 0.2xIndustry Avg. 1.0xNo. of Companies25PS012345+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.0x35.0%
SAOA Sasol
 0.2x71.1%US$3.19b
No more companies

Price-To-Sales vs Industry: SAOA is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is SAOA'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.

SAOA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: SAOA is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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 SAOA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.00
€9.51
+90.2%
20.0%€12.14€6.07n/a9
Nov ’25€5.30
€9.67
+82.5%
20.6%€12.54€6.01n/a8
Oct ’25€5.95
€9.94
+67.0%
18.4%€12.27€7.26n/a8
Sep ’25€7.20
€10.07
+39.8%
19.0%€13.20€7.21n/a8
Aug ’25€7.35
€10.12
+37.7%
19.9%€13.06€7.13n/a8
Jul ’25€7.35
€10.84
+47.5%
22.6%€14.38€7.26n/a8
Jun ’25€6.15
€10.70
+74.0%
22.3%€14.16€7.15n/a8
May ’25€6.60
€10.55
+59.9%
22.3%€13.96€7.05n/a8
Apr ’25€6.88
€10.65
+54.9%
21.4%€13.77€6.96n/a8
Mar ’25€7.00
€11.07
+58.1%
22.8%€13.58€6.86n/a8
Feb ’25€7.98
€13.18
+65.2%
15.5%€17.10€9.09n/a9
Jan ’25€8.92
€13.93
+56.1%
11.2%€17.33€12.27n/a9
Dec ’24€10.00
€13.96
+39.6%
12.1%€16.86€11.94n/a9
Nov ’24€11.85
€15.28
+29.0%
9.9%€17.67€12.67€5.309
Oct ’24€12.70
€14.83
+16.8%
9.9%€17.09€12.25€5.959
Sep ’24€11.80
€15.07
+27.7%
7.5%€16.95€12.98€7.209
Aug ’24€12.70
€16.14
+27.1%
11.2%€20.44€13.57€7.359
Jul ’24€11.15
€15.56
+39.5%
11.7%€19.43€12.90€7.358
Jun ’24€11.00
€15.75
+43.2%
10.6%€18.31€12.64€6.158
May ’24€11.50
€17.28
+50.2%
12.8%€22.06€13.85€6.608
Apr ’24€12.50
€17.28
+38.2%
12.8%€22.06€13.85€6.888
Mar ’24€14.15
€19.05
+34.6%
20.7%€28.45€14.22€7.009
Feb ’24€16.60
€20.71
+24.8%
17.9%€29.47€15.54€7.989
Jan ’24€14.85
€21.24
+43.0%
21.6%€32.67€15.79€8.929
Dec ’23€15.10
€21.52
+42.5%
20.4%€32.41€15.66€10.009
Nov ’23€15.70
€22.33
+42.2%
20.3%€33.40€16.70€11.858

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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