Centum Electronics Limited

NSEI:CENTUM Stock Report

Market Cap: ₹20.2b

Centum Electronics Valuation

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

Below Fair Value: CENTUM (₹1570.5) is trading above our estimate of fair value (₹1062.48)

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


Key Valuation Metric

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

Key metric: As CENTUM is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CENTUM. This is calculated by dividing CENTUM's market cap by their current revenue.
What is CENTUM's PS Ratio?
PS Ratio1.8x
Sales₹11.00b
Market Cap₹20.23b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CENTUM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.5x
531201 Shilchar Technologies
12.4xn/a₹57.7b
517246 BCC Fuba India
3.6xn/a₹1.3b
517288 Gujarat Poly Electronics
4.7xn/a₹820.8m
DLINKINDIA D-Link (India)
1.4xn/a₹18.7b
CENTUM Centum Electronics
1.8x20.3%₹20.2b

Price-To-Sales vs Peers: CENTUM is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (5.5x).


Price to Sales Ratio vs Industry

How does CENTUM's PS Ratio compare vs other companies in the IN Electronic Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
REDINGTON Redington
0.2x10.1%US$1.77b
RPTECH Rashi Peripherals
0.2xn/aUS$282.49m
SLONE Slone Infosystems
0.7xn/aUS$15.99m
500370 Salora International
0.4xn/aUS$6.75m
CENTUM 1.8xIndustry Avg. 2.6xNo. of Companies9PS02.85.68.411.214+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CENTUM is good value based on its Price-To-Sales Ratio (1.8x) compared to the Indian Electronic industry average (2.6x).


Price to Sales Ratio vs Fair Ratio

What is CENTUM'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.

CENTUM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: CENTUM is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).


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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