Nestlé Lanka PLC

COSE:NEST.N0000 Stock Report

Market Cap: LK₨60.2b

Nestlé Lanka Valuation

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

Below Fair Value: NEST.N0000 (LKR1120.25) is trading above our estimate of fair value (LKR1045.97)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NEST.N0000 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/Revenue0.6x
Enterprise Value/EBITDA2.8x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NEST.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
CARS.N0000 Carson Cumberbatch
7.7xn/aLK₨56.1b
CTEA.N0000 Dilmah Ceylon Tea
67.8xn/aLK₨20.7b
BIL.N0000 Browns Investments
5.9xn/aLK₨92.0b
LMF.N0000 Lanka Milk Foods (CWE)
6.3xn/aLK₨12.6b
NEST.N0000 Nestlé Lanka
5.9x29.4%LK₨60.2b

Price-To-Earnings vs Peers: NEST.N0000 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

How does NEST.N0000's PE Ratio compare vs other companies in the LK Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NEST.N0000 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the LK Food industry average (6.3x).


Price to Earnings Ratio vs Fair Ratio

What is NEST.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.

NEST.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ratio9.6x

Price-To-Earnings vs Fair Ratio: NEST.N0000 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the estimated Fair Price-To-Earnings Ratio (9.6x).


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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