Umeme Valuation

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

UMME (KES16.5) is trading below our estimate of [[fair value]] (KES42.85)

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

Below Fair Value: UMME (KES16.5) is trading below our estimate of fair value (KES42.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UMME. This is calculated by dividing UMME's market cap by their current earnings.
What is UMME's PE Ratio?
PE Ratio	60.5x
Earnings	USh11.27b
Market Cap	USh682.03b

UMME 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	0.3x
Enterprise Value/EBITDA	1.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UMME 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	27.1x
KPLC Kenya Power and Lighting	0.3x	n/a	KSh8.5b
KEGN Kenya Electricity Generating	3.9x	n/a	KSh26.4b
DPSCLTD India Power	92.7x	n/a	₹16.3b
SEALDC1 Sociedad Eléctrica del Sur Oeste	11.6x	n/a	S/776.5m
UMME Umeme	60.5x	n/a	KSh682.0b

Price-To-Earnings vs Peers: UMME is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the peer average (27.1x).

Price to Earnings Ratio vs Industry

How does UMME's PE Ratio compare vs other companies in the Global Electric Utilities Industry?

9 Companies	Price / Earnings	Estimated Growth	Market Cap

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: UMME is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the Global Electric Utilities industry average (14.6x).

Price to Earnings Ratio vs Fair Ratio

What is UMME'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.

UMME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	60.5x
Fair PE Ratio	n/a

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