Parag Milk Foods Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: PARAGMILK (₹207.09) is trading above our estimate of fair value (₹130.74)

Significantly Below Fair Value: PARAGMILK is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PARAGMILK. This is calculated by dividing PARAGMILK's market cap by their current earnings.
What is PARAGMILK's PE Ratio?
PE Ratio	24.6x
Earnings	₹1.00b
Market Cap	₹24.71b

PARAGMILK 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	13.7x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PARAGMILK 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	77.3x
519156 Vadilal Industries	17.3x	n/a	₹26.6b
DIAMONDYD Prataap Snacks	63.3x	43.9%	₹24.5b
519091 Tasty Bite Eatables	183x	n/a	₹27.8b
519183 ADF Foods	45.4x	22.9%	₹36.0b
PARAGMILK Parag Milk Foods	24.6x	21.0%	₹24.7b

Price-To-Earnings vs Peers: PARAGMILK is good value based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (77.3x).

Price to Earnings Ratio vs Industry

How does PARAGMILK's PE Ratio compare vs other companies in the IN Food Industry?

11 Companies	Price / Earnings	Estimated Growth	Market Cap
539594 Mishtann Foods	4.2x	n/a	US$180.89m
ZUARIIND Zuari Industries	1.3x	n/a	US$116.10m
SARVESHWAR Sarveshwar Foods	3.3x	n/a	US$109.81m
507315 Sakthi Sugars	4.7x	n/a	US$46.39m

11 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PARAGMILK is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the Indian Food industry average (23.9x).

Price to Earnings Ratio vs Fair Ratio

What is PARAGMILK'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.

PARAGMILK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.6x
Fair PE Ratio	35.1x

Price-To-Earnings vs Fair Ratio: PARAGMILK is good value based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (35.1x).

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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