Central Finance Company PLC

COSE:CFIN.N0000 Stock Report

Market Cap: LK₨28.6b

Central Finance Valuation

Is CFIN.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: CFIN.N0000 (LKR126) is trading below our estimate of fair value (LKR132.81)

Significantly Below Fair Value: CFIN.N0000 is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As CFIN.N0000 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CFIN.N0000. This is calculated by dividing CFIN.N0000's market cap by their current earnings.
What is CFIN.N0000's PE Ratio?
PE Ratio3.4x
EarningsLK₨8.52b
Market CapLK₨28.65b

Price to Earnings Ratio vs Peers

How does CFIN.N0000's PE Ratio compare to its peers?

The above table shows the PE ratio for CFIN.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.4x
PLC.N0000 People's Leasing & Finance
6.6xn/aLK₨28.4b
SFCL.N0000 Senkadagala Finance
18xn/aLK₨32.4b
LFIN.N0000 LB Finance
4.4xn/aLK₨44.3b
CDB.N0000 Citizens Development Business Finance
4.5xn/aLK₨15.1b
CFIN.N0000 Central Finance
3.4xn/aLK₨28.6b

Price-To-Earnings vs Peers: CFIN.N0000 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

How does CFIN.N0000's PE Ratio compare vs other companies in the LK Consumer Finance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
CFIN.N0000 3.4xIndustry Avg. 14.3xNo. of Companies7PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CFIN.N0000 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the Asian Consumer Finance industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is CFIN.N0000'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.

CFIN.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CFIN.N0000'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.

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