Melstacorp PLC

COSE:MELS.N0000 Stock Report

Market Cap: LK₨125.9b

Melstacorp Valuation

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

Below Fair Value: MELS.N0000 (LKR108) is trading below our estimate of fair value (LKR112.43)

Significantly Below Fair Value: MELS.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 MELS.N0000?

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

The above table shows the Price to Earnings ratio for MELS.N0000. This is calculated by dividing MELS.N0000's market cap by their current earnings.
What is MELS.N0000's PE Ratio?
PE Ratio9.5x
EarningsLK₨13.30b
Market CapLK₨125.86b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MELS.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.5x
DIST.N0000 Distilleries Company of Sri Lanka
9.9xn/aLK₨145.4b
CCS.N0000 Ceylon Cold Stores
13xn/aLK₨61.8b
LION.N0000 Lion Brewery (Ceylon)
9.5xn/aLK₨83.5b
BREW.N0000 Ceylon Beverage Holdings
9.5xn/aLK₨42.0b
MELS.N0000 Melstacorp
9.5xn/aLK₨125.9b

Price-To-Earnings vs Peers: MELS.N0000 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

How does MELS.N0000's PE Ratio compare vs other companies in the Asian Beverage Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
MELS.N0000 9.5xIndustry Avg. 19.0xNo. of Companies23PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MELS.N0000 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Asian Beverage industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is MELS.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.

MELS.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ration/a

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