Laboratorio Farmaceutico Erfo Valuation

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

ERFO (€0.93) is trading below our estimate of [[fair value]] (€3.25)

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

Below Fair Value: ERFO (€0.93) is trading below our estimate of fair value (€3.25)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ERFO. This is calculated by dividing ERFO's market cap by their current earnings.
What is ERFO's PE Ratio?
PE Ratio	18x
Earnings	€441.11k
Market Cap	€7.94m

ERFO 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	1.2x
Enterprise Value/EBITDA	6.2x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ERFO 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	30.8x
KIP Kolinpharma	46.5x	n/a	€15.9m
ENV Enervit	15.9x	26.3%	€59.5m
PHN Pharmanutra	31.8x	18.5%	€516.9m
ICOS Intercos	29.2x	22.6%	€1.3b
ERFO Laboratorio Farmaceutico Erfo	18x	17.6%	€7.9m

Price-To-Earnings vs Peers: ERFO is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (25.6x).

Price to Earnings Ratio vs Industry

How does ERFO's PE Ratio compare vs other companies in the European Personal Products Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ERFO is good value based on its Price-To-Earnings Ratio (18x) compared to the European Personal Products industry average (22.2x).

Price to Earnings Ratio vs Fair Ratio

What is ERFO'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.

ERFO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18x
Fair PE Ratio	15.2x

Price-To-Earnings vs Fair Ratio: ERFO is expensive based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

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.