Supermarket Income REIT Valuation

Q: What is the Fair Price of DU9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DU9 (€0.83) is trading below our estimate of [[fair value]] (€1.1)

Is DU9 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 DU9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DU9 (€0.83) is trading below our estimate of fair value (€1.1)

Significantly Below Fair Value: DU9 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DU9?

Key metric: As DU9 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DU9. This is calculated by dividing DU9's market cap by their current revenue.
What is DU9's PS Ratio?
PS Ratio	8.3x
Sales	UK£107.23m
Market Cap	UK£887.32m

DU9 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	14.2x
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DU9's PS Ratio compare to its peers?

The above table shows the PS ratio for DU9 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	4.1x
HABA Hamborner REIT	5x	1.7%	€525.5m
DKG Deutsche Konsum REIT-AG	1.3x	-12.7%	€141.7m
AOX alstria office REIT-AG	5.1x	-1.5%	€1.2b
VKE Vukile Property Fund	4.9x	1.8%	R19.6b
DU9 Supermarket Income REIT	8.3x	5.3%	€887.3m

Price-To-Sales vs Peers: DU9 is expensive based on its Price-To-Sales Ratio (8.3x) compared to the peer average (4.1x).

Price to Sales Ratio vs Industry

How does DU9's PS Ratio compare vs other companies in the European Retail REITs Industry?

0 Companies	Price / Sales	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: DU9 is expensive based on its Price-To-Sales Ratio (8.3x) compared to the European Retail REITs industry average (5.7x).

Price to Sales Ratio vs Fair Ratio

What is DU9'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.

DU9 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	8.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate DU9's Price-To-Sales Fair Ratio for valuation analysis.

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.

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