Kapchorua Tea Kenya Valuation

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

KAPC (KES226.5) is trading above our estimate of [[fair value]] (KES16.62)

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

Below Fair Value: KAPC (KES226.5) is trading above our estimate of fair value (KES16.62)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KAPC. This is calculated by dividing KAPC's market cap by their current earnings.
What is KAPC's PE Ratio?
PE Ratio	8.9x
Earnings	KSh199.50m
Market Cap	KSh1.77b

KAPC 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	0.6x
Enterprise Value/EBITDA	4.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KAPC 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	43.7x
LIMT Limuru Tea	107.9x	n/a	KSh876.0m
SASN Sasini	8.9x	n/a	KSh3.5b
KUKZ Kakuzi	11.4x	n/a	KSh7.8b
EGAD Eaagads	46.5x	n/a	KSh426.1m
KAPC Kapchorua Tea Kenya	8.9x	n/a	KSh1.8b

Price-To-Earnings vs Peers: KAPC is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (43.7x).

Price to Earnings Ratio vs Industry

How does KAPC's PE Ratio compare vs other companies in the African Food Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KAPC is good value based on its Price-To-Earnings Ratio (8.9x) compared to the African Food industry average (9.7x).

Price to Earnings Ratio vs Fair Ratio

What is KAPC'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.

KAPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KAPC's Price-To-Earnings 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.