Illovo Sugar (Malawi) Valuation

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

Below Fair Value: ILLOVO (MWK1355.09) is trading below our estimate of fair value (MWK1889.13)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ILLOVO. This is calculated by dividing ILLOVO's market cap by their current earnings.
What is ILLOVO's PE Ratio?
PE Ratio	21.3x
Earnings	MK 45.42b
Market Cap	MK 966.78b

ILLOVO 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	3.3x
Enterprise Value/EBITDA	12.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ILLOVO 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	15.8x
ICHI Ichitan Group	14.3x	7.2%	฿19.9b
605077 Zhejiang Huakang Pharmaceutical	16.4x	n/a	CN¥4.7b
KRI Kri-Kri Milk Industry	12.7x	5.7%	€455.3m
SAPPE Sappe	19.7x	12.8%	฿24.3b
ILLOVO Illovo Sugar (Malawi)	21.3x	n/a	MK 966.8b

Price-To-Earnings vs Peers: ILLOVO is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

How does ILLOVO's PE Ratio compare vs other companies in the African Food Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ILLOVO is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the African Food industry average (9.8x).

Price to Earnings Ratio vs Fair Ratio

What is ILLOVO'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.

ILLOVO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.3x
Fair PE Ratio	n/a

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