TGB Banquets and Hotels Valuation

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

TGBHOTELS (₹14.48) is trading below our estimate of [[fair value]] (₹170.14)

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

Below Fair Value: TGBHOTELS (₹14.48) is trading below our estimate of fair value (₹170.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TGBHOTELS. This is calculated by dividing TGBHOTELS's market cap by their current revenue.
What is TGBHOTELS's PS Ratio?
PS Ratio	1.2x
Sales	₹354.86m
Market Cap	₹424.07m

TGBHOTELS 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	1.7x
Enterprise Value/EBITDA	-10.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TGBHOTELS 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	2.9x
508664 Best Eastern Hotels	4.4x	n/a	₹280.2m
507981 Jindal Hotels	1.5x	n/a	₹668.1m
SAJHOTELS Saj Hotels	4.6x	n/a	₹671.6m
532145 H S India	1x	n/a	₹254.9m
TGBHOTELS TGB Banquets and Hotels	1.2x	n/a	₹424.1m

Price-To-Sales vs Peers: TGBHOTELS is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (2.9x).

Price to Sales Ratio vs Industry

How does TGBHOTELS's PS Ratio compare vs other companies in the IN Hospitality Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
COFFEEDAY Coffee Day Enterprises	0.6x	n/a	US$81.20m
509953 Trade Wings	0.3x	n/a	US$1.81m
543541 Sailani Tours N Travels	0.4x	n/a	US$1.11m
526795 Mahasagar Travels	0.1x	n/a	US$575.62k

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: TGBHOTELS is good value based on its Price-To-Sales Ratio (1.2x) compared to the Indian Hospitality industry average (4.6x).

Price to Sales Ratio vs Fair Ratio

What is TGBHOTELS'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.

TGBHOTELS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.2x
Fair PS Ratio	n/a

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