Browns Beach Hotels PLC

COSE:BBH.N0000 Stock Report

Market Cap: LK₨2.0b

Browns Beach Hotels Valuation

Is BBH.N0000 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 BBH.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBH.N0000 (LKR15.2) is trading above our estimate of fair value (LKR6.03)

Significantly Below Fair Value: BBH.N0000 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BBH.N0000?

Key metric: As BBH.N0000 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BBH.N0000. This is calculated by dividing BBH.N0000's market cap by their current revenue.
What is BBH.N0000's PS Ratio?
PS Ratio1.4x
SalesLK₨1.45b
Market CapLK₨1.97b

Price to Sales Ratio vs Peers

How does BBH.N0000's PS Ratio compare to its peers?

The above table shows the PS ratio for BBH.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
BERU.N0000 Beruwala Resorts
2.9xn/aLK₨2.4b
CITW.N0000 Waskaduwa Beach Resort
1.6xn/aLK₨1.9b
CITH.N0000 Hikkaduwa Beach Resort
1xn/aLK₨1.8b
LHL.N0000 Lighthouse Hotel
1.7x14.7%LK₨2.4b
BBH.N0000 Browns Beach Hotels
1.4xn/aLK₨2.0b

Price-To-Sales vs Peers: BBH.N0000 is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.8x).


Price to Sales Ratio vs Industry

How does BBH.N0000's PS Ratio compare vs other companies in the LK Hospitality Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
No more companies available in this PS range
BBH.N0000 1.4xIndustry Avg. 1.9xNo. of Companies6PS01.22.43.64.86+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BBH.N0000 is good value based on its Price-To-Sales Ratio (1.4x) compared to the LK Hospitality industry average (1.9x).


Price to Sales Ratio vs Fair Ratio

What is BBH.N0000'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.

BBH.N0000 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate BBH.N0000'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.


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