Prosus Valuation

Is 1YL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1YL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1YL (€7.4) is trading above our estimate of fair value (€5.19)

Significantly Below Fair Value: 1YL is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1YL?

Key metric: As 1YL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1YL. This is calculated by dividing 1YL's market cap by their current earnings.
What is 1YL's PE Ratio?
PE Ratio13.8x
EarningsUS$6.88b
Market CapUS$95.12b

Price to Earnings Ratio vs Peers

How does 1YL's PE Ratio compare to its peers?

The above table shows the PE ratio for 1YL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.9x
JD JD.com
11.2x8.4%US$51.2b
WES Wesfarmers
31.8x8.2%AU$81.3b
BABA Alibaba Group Holding
16.6x15.0%US$193.7b
MELI MercadoLibre
72.1x27.9%US$107.0b
1YL Prosus
13.8x4.8%€90.1b

Price-To-Earnings vs Peers: 1YL is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (32.9x).


Price to Earnings Ratio vs Industry

How does 1YL's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1YL 13.8xIndustry Avg. 19.8xNo. of Companies19PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1YL is good value based on its Price-To-Earnings Ratio (13.8x) compared to the Global Multiline Retail industry average (19.8x).


Price to Earnings Ratio vs Fair Ratio

What is 1YL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1YL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.8x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: 1YL is good value based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).


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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