Distribution Finance Capital Holdings Valuation

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

DFCH (£0.32) is trading above our estimate of [[fair value]] (£0.24)

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

Below Fair Value: DFCH (£0.32) is trading above our estimate of fair value (£0.24)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DFCH. This is calculated by dividing DFCH's market cap by their current earnings.
What is DFCH's PE Ratio?
PE Ratio	7.4x
Earnings	UK£7.63m
Market Cap	UK£56.54m

DFCH 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DFCH 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	22.5x
TRU TruFin	29.4x	n/a	UK£73.0m
TIME Time Finance	11.7x	14.9%	UK£52.1m
LIT Litigation Capital Management	20.3x	18.2%	UK£132.8m
EQLS Equals Group	28.7x	32.0%	UK£233.9m
DFCH Distribution Finance Capital Holdings	7.4x	n/a	UK£56.5m

Price-To-Earnings vs Peers: DFCH is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does DFCH's PE Ratio compare vs other companies in the GB Diversified Financial Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
NBS Nationwide Building Society	0.9x	n/a	US$1.53b

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DFCH is good value based on its Price-To-Earnings Ratio (7.4x) compared to the UK Diversified Financial industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is DFCH'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.

DFCH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.4x
Fair PE Ratio	n/a

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

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