LG Display Valuation

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

LGA (€3.28) is trading below our estimate of [[fair value]] (€14.55)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: LGA (€3.28) is trading below our estimate of fair value (€14.55)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LGA. This is calculated by dividing LGA's market cap by their current revenue.
What is LGA's PS Ratio?
PS Ratio	0.2x
Sales	₩26.18t
Market Cap	₩4.94t

LGA 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	0.7x
Enterprise Value/EBITDA	4.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for LGA 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	2.5x
H2A H2APEX Group	6.6x	34.1%	€207.2m
JEN Jenoptik	1.1x	4.4%	€1.2b
ADV Adtran Networks	2.1x	4.6%	€1.0b
SCE Schweizer Electronic	0.07x	4.3%	€11.3m
LGA LG Display	0.2x	1.2%	€4.9t

Price-To-Sales vs Peers: LGA is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does LGA's PS Ratio compare vs other companies in the DE Electronic Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
SCE Schweizer Electronic	0.07x	4.3%	US$11.87m
UDC UniDevice	0.004x	4.6%	US$1.94m
7PF0 Syncro Group	0.02x	n/a	US$343.86k
UDC UniDevice	0.0004x	n/a	US$157.96k

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: LGA is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Electronic industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is LGA'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.

LGA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	0.3x

Price-To-Sales vs Fair Ratio: LGA is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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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