Honkarakenne Oyj Valuation

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

HONBS (€2.78) is trading below our estimate of [[fair value]] (€4.96)

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

Below Fair Value: HONBS (€2.78) is trading below our estimate of fair value (€4.96)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for HONBS. This is calculated by dividing HONBS's market cap by their current revenue.
What is HONBS's PS Ratio?
PS Ratio	0.4x
Sales	€37.80m
Market Cap	€16.38m

HONBS 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	0.3x
Enterprise Value/EBITDA	-12.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HONBS 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	0.5x
YIT YIT Oyj	0.3x	4.6%	€576.4m
ORTHEX Orthex Oyj	1.1x	6.1%	€93.8m
RAP1V Rapala VMC	0.4x	n/a	€78.5m
RDNI3 RNI Negócios Imobiliários	0.3x	n/a	R$112.3m
HONBS Honkarakenne Oyj	0.4x	11.9%	€16.4m

Price-To-Sales vs Peers: HONBS is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does HONBS's PS Ratio compare vs other companies in the European Consumer Durables Industry?

13 Companies	Price / Sales	Estimated Growth	Market Cap

13 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HONBS is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Consumer Durables industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is HONBS'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.

HONBS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	0.6x

Price-To-Sales vs Fair Ratio: HONBS is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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.