Wonder Electricals Valuation

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

WEL (₹133.7) is trading above our estimate of [[fair value]] (₹2.37)

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

Below Fair Value: WEL (₹133.7) is trading above our estimate of fair value (₹2.37)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for WEL. This is calculated by dividing WEL's market cap by their current revenue.
What is WEL's PS Ratio?
PS Ratio	2.4x
Sales	₹7.51b
Market Cap	₹17.92b

WEL 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	2.5x
Enterprise Value/EBITDA	64x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WEL 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	8.5x
SAHASRA Sahasra Electronic Solutions	21x	n/a	₹21.3b
AIMTRON Aimtron Electronics	9.2x	n/a	₹9.9b
VINYAS Vinyas Innovative Technologies	3x	n/a	₹9.8b
ELIN Elin Electronics	0.9x	13.7%	₹10.2b
WEL Wonder Electricals	2.4x	n/a	₹17.9b

Price-To-Sales vs Peers: WEL is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (8.5x).

Price to Sales Ratio vs Industry

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

7 Companies	Price / Sales	Estimated Growth	Market Cap
REDINGTON Redington	0.2x	10.1%	US$1.80b
RPTECH Rashi Peripherals	0.2x	n/a	US$286.47m
500370 Salora International	0.4x	n/a	US$6.76m
543461 Safa Systems & Technologies	0.05x	n/a	US$3.59m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: WEL is good value based on its Price-To-Sales Ratio (2.4x) compared to the Indian Electronic industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

What is WEL'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.

WEL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.4x
Fair PS Ratio	n/a

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

Discover undervalued companies

Avance Technologies

₹1.9b

Avance Technologies Limited is involved in the resale of software and hardware products in India.

512149

₹0.95

69.6%

Smartlink Holdings

₹1.9b

Smartlink Holdings Limited, together with its subsidiaries, sources, develops, manufactures, markets, distributes, and services networking products in India and internationally.

SMARTLINK

₹192.19

-6.3%

14.2%

WOL 3D India

₹877.8m

Provides 3D printing solutions in India.

WOL3D

₹136.05

-9.1%

n/a