Safestay Valuation

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

SSTY (£0.27) is trading above our estimate of [[fair value]] (£0.18)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: SSTY (£0.27) is trading above our estimate of fair value (£0.18)

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

Key Valuation Metric

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

Key metric: As SSTY is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SSTY. This is calculated by dividing SSTY's market cap by their current revenue.
What is SSTY's PS Ratio?
PS Ratio	0.8x
Sales	UK£22.16m
Market Cap	UK£17.21m

SSTY 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	3x
Enterprise Value/EBITDA	19.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SSTY 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	1.5x
HYDP Hydro Hotel Eastbourne	1.1x	n/a	UK£5.1m
HSW Hostelworld Group	2.1x	7.1%	UK£166.9m
OTB On the Beach Group	1.5x	4.1%	UK£264.5m
PPH PPHE Hotel Group	1.1x	5.5%	UK£484.8m
SSTY Safestay	0.8x	n/a	UK£17.2m

Price-To-Sales vs Peers: SSTY is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does SSTY's PS Ratio compare vs other companies in the GB Hospitality Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap
EVOK Evoke	0.1x	5.9%	US$298.37m
TRC Revel Collective	0.06x	-3.1%	US$10.92m
NGHT Nightcap	0.1x	n/a	US$8.62m
COM Comptoir Group	0.1x	n/a	US$6.06m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SSTY is good value based on its Price-To-Sales Ratio (0.8x) compared to the UK Hospitality industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is SSTY'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.

SSTY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SSTY'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.