ForFarmers Valuation

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

FFARMA (€3.23) is trading below our estimate of [[fair value]] (€12.03)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: FFARMA (€3.23) is trading below our estimate of fair value (€12.03)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FFARMA. This is calculated by dividing FFARMA's market cap by their current earnings.
What is FFARMA's PE Ratio?
PE Ratio	14.8x
Earnings	€18.00m
Market Cap	€266.37m

FFARMA 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	0.1x
Enterprise Value/EBITDA	6x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FFARMA 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	8x
AEP Anglo-Eastern Plantations	6.2x	n/a	UK£271.3m
MPE M.P. Evans Group	9.7x	1.2%	UK£507.7m
WYN Wynnstay Group	12x	n/a	UK£70.9m
MHPC MHP	4x	n/a	US$452.8m
FFARMA ForFarmers	14.8x	24.1%	€266.4m

Price-To-Earnings vs Peers: FFARMA is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (5.5x).

Price to Earnings Ratio vs Industry

How does FFARMA's PE Ratio compare vs other companies in the European Food Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FFARMA is good value based on its Price-To-Earnings Ratio (14.8x) compared to the European Food industry average (15.3x).

Price to Earnings Ratio vs Fair Ratio

What is FFARMA'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.

FFARMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.8x
Fair PE Ratio	n/a

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

Discover undervalued companies

Bakkavor Group

UK£751.9m

Engages in the preparation and marketing of fresh prepared foods in the United Kingdom, the United States, and China.

BAKKL

UK£1.29

-3.4%

50.0%

Ebro Foods

€2.4b

Operates as a food company in Spain, rest of Europe, the United States, Canada, and internationally.

0NYH

€15.88

-0.6%

0.6%

M.P. Evans Group

UK£507.7m

Through its subsidiaries, engages in the ownership and development of oil palm plantations in Indonesia and Malaysia.

MPE

UK£9.68

3.6%

30.1%