Petco Health and Wellness Company Valuation

Q: What is the Fair Price of 7G9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7G9 (€3.93) is trading below our estimate of [[fair value]] (€5.54)

Is 7G9 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 7G9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7G9 (€3.93) is trading below our estimate of fair value (€5.54)

Significantly Below Fair Value: 7G9 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7G9?

Key metric: As 7G9 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 7G9. This is calculated by dividing 7G9's market cap by their current revenue.
What is 7G9's PS Ratio?
PS Ratio	0.2x
Sales	US$6.22b
Market Cap	US$1.16b

7G9 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	0.6x
Enterprise Value/EBITDA	22.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 7G9's PS Ratio compare to its peers?

The above table shows the PS ratio for 7G9 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	0.6x
DOU Douglas	0.5x	6.2%	€2.0b
FIE Fielmann Group	1.6x	6.7%	€3.4b
MRX Mister Spex	0.2x	2.6%	€51.3m
BIKE Bike24 Holding	0.2x	6.5%	€49.9m
7G9 Petco Health and Wellness Company	0.2x	1.4%	€1.2b

Price-To-Sales vs Peers: 7G9 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does 7G9's PS Ratio compare vs other companies in the DE Specialty Retail Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
CEC Ceconomy	0.07x	1.1%	US$1.57b
GFG Global Fashion Group	0.07x	-0.5%	US$54.56m
DEX Delticom	0.07x	2.7%	US$35.36m
49S Superdry	0.004x	-1.4%	US$3.12m

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 7G9 is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Specialty Retail industry average (0.4x).

Price to Sales Ratio vs Fair Ratio

What is 7G9'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.

7G9 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 7G9'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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