Lucky Cement Valuation

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

LKCS ($13) is trading below our estimate of [[fair value]] ($21.38)

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

Below Fair Value: LKCS ($13) is trading below our estimate of fair value ($21.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LKCS. This is calculated by dividing LKCS's market cap by their current earnings.
What is LKCS's PE Ratio?
PE Ratio	4.8x
Earnings	PK₨53.09b
Market Cap	PK₨254.82b

LKCS 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	1x
Enterprise Value/EBITDA	3.6x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LKCS 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	41.3x
MSLH Marshalls	38x	28.1%	UK£820.0m
IBST Ibstock	100.8x	36.5%	UK£731.0m
RHIM RHI Magnesita	9.6x	12.0%	UK£1.5b
BREE Breedon Group	16.8x	14.1%	UK£1.6b
LKCS Lucky Cement	4.8x	18.4%	US$254.8b

Price-To-Earnings vs Peers: LKCS is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (36.1x).

Price to Earnings Ratio vs Industry

How does LKCS's PE Ratio compare vs other companies in the European Basic Materials Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LKCS is good value based on its Price-To-Earnings Ratio (4.8x) compared to the European Basic Materials industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

What is LKCS'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.

LKCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.8x
Fair PE Ratio	14.5x

Price-To-Earnings vs Fair Ratio: LKCS is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).

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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