Hero Supermarket Valuation

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

Below Fair Value: HERO (IDR595) is trading below our estimate of fair value (IDR1082.29)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for HERO. This is calculated by dividing HERO's market cap by their current revenue.
What is HERO's PS Ratio?
PS Ratio0.5x
SalesRp5.19t
Market CapRp2.49t

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HERO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
RANC Supra Boga Lestari
0.3xn/aRp769.7b
MIDI Midi Utama Indonesia
0.7x10.7%Rp14.0t
BUAH Segar Kumala Indonesia
1xn/aRp2.1t
AMRT Sumber Alfaria Trijaya
1.1x10.7%Rp122.1t
HERO Hero Supermarket
0.5xn/aRp2.5t

Price-To-Sales vs Peers: HERO is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.8x).


Price to Sales Ratio vs Industry

How does HERO's PS Ratio compare vs other companies in the Asian Consumer Retailing Industry?

22 CompaniesPrice / SalesEstimated GrowthMarket Cap
HERO 0.5xIndustry Avg. 0.5xNo. of Companies55PS00.40.81.21.62+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HERO is expensive based on its Price-To-Sales Ratio (0.5x) compared to the Asian Consumer Retailing industry average (0.5x).


Price to Sales Ratio vs Fair Ratio

What is HERO'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.

HERO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ration/a

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


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