Middle Egypt Flour Mills Valuation

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

CEFM (EGP47.38) is trading below our estimate of [[fair value]] (EGP73.08)

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

Below Fair Value: CEFM (EGP47.38) is trading below our estimate of fair value (EGP73.08)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CEFM. This is calculated by dividing CEFM's market cap by their current earnings.
What is CEFM's PE Ratio?
PE Ratio	5.3x
Earnings	ج.م131.17m
Market Cap	ج.م697.57m

CEFM 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	0.5x
Enterprise Value/EBITDA	4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CEFM's PE Ratio compare to its peers?

The above table shows the PE ratio for CEFM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.3x
AFMC Alexandria Flour Mills	15.2x	n/a	ج.م841.7m
EDFM East Delta Flour Mills	7.9x	n/a	ج.م1.5b
AJWA AJWA For Food Industries Egypt	12.2x	n/a	ج.م1.4b
INFI Ismailia national company for food industries	9.9x	n/a	ج.م793.3m
CEFM Middle Egypt Flour Mills	5.3x	n/a	ج.م697.6m

Price-To-Earnings vs Peers: CEFM is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (11.3x).

Price to Earnings Ratio vs Industry

How does CEFM's PE Ratio compare vs other companies in the African Food Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CEFM is good value based on its Price-To-Earnings Ratio (5.3x) compared to the EG Food industry average (9.3x).

Price to Earnings Ratio vs Fair Ratio

What is CEFM'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.

CEFM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CEFM's Price-To-Earnings 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.