R.E.A. Holdings plc

LSE:RE. Stock Report

Market Cap: UK£35.5m

R.E.A. Holdings Valuation

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

Below Fair Value: RE. (£0.81) is trading below our estimate of fair value (£12.06)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RE.. This is calculated by dividing RE.'s market cap by their current revenue.
What is RE.'s PS Ratio?
PS Ratio0.2x
SalesUS$184.05m
Market CapUS$44.94m

Price to Sales Ratio vs Peers

How does RE.'s PS Ratio compare to its peers?

The above table shows the PS ratio for RE. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
WYN Wynnstay Group
0.1x-3.5%UK£71.3m
CAM Camellia
0.4x4.8%UK£123.5m
CARR Carr's Group
0.8x6.1%UK£113.3m
AEP Anglo-Eastern Plantations
1xn/aUK£274.1m
RE. R.E.A. Holdings
0.2x8.8%UK£35.5m

Price-To-Sales vs Peers: RE. is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does RE.'s PS Ratio compare vs other companies in the GB Food Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
MHPC MHP
0.1xn/aUS$436.72m
WYN Wynnstay Group
0.1x-3.5%US$90.23m
RGD Real Good Food
0.04xn/aUS$1.84m
UKR Ukrproduct Group
0.03xn/aUS$1.13m
RE. 0.2xIndustry Avg. 0.8xNo. of Companies5PS00.81.62.43.24+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RE. is good value based on its Price-To-Sales Ratio (0.2x) compared to the UK Food industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is RE.'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.

RE. PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: RE. is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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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