G City Valuation

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

GCT (₪15.35) is trading below our estimate of [[fair value]] (₪25.52)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: GCT (₪15.35) is trading below our estimate of fair value (₪25.52)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for GCT. This is calculated by dividing GCT's market cap by their current revenue.
What is GCT's PS Ratio?
PS Ratio	1.1x
Sales	₪2.50b
Market Cap	₪2.78b

GCT 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	13x
Enterprise Value/EBITDA	36.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GCT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	7.1x
VILR Villar International	8.9x	n/a	₪3.0b
ALRPR Alrov Properties and Lodgings	2.7x	n/a	₪3.2b
MGOR Mega Or Holdings	9.2x	n/a	₪4.0b
BCNV-M Brack Capital Properties	7.9x	n/a	₪2.2b
GCT G City	1.1x	n/a	₪2.8b

Price-To-Sales vs Peers: GCT is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (7.1x).

Price to Sales Ratio vs Industry

How does GCT's PS Ratio compare vs other companies in the IL Real Estate Industry?

6 Companies	Price / Sales	Estimated Growth	Market Cap
NSTR Norstar Holdings	0.3x	n/a	US$235.19m
AVIV Mordechai Aviv Taasiot Beniyah (1973)	0.7x	n/a	US$69.81m
MSHR Mishorim Real Estate Investments	0.5x	n/a	US$66.64m
CILO Cielo-Blu Group	0.5x	n/a	US$42.08m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: GCT is good value based on its Price-To-Sales Ratio (1.1x) compared to the IL Real Estate industry average (4.2x).

Price to Sales Ratio vs Fair Ratio

What is GCT'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.

GCT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.1x
Fair PS Ratio	n/a

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