Target Hospitality Corp.

BMV:TH * Stock Report

Market Cap: Mex$15.2b

Target Hospitality Valuation

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

Below Fair Value: TH * (MX$188.36) is trading below our estimate of fair value (MX$218.64)

Significantly Below Fair Value: TH * 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 TH *?

Other financial metrics that can be useful for relative valuation.

TH * 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/Revenue1.7x
Enterprise Value/EBITDA3.1x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does TH *'s PE Ratio compare to its peers?

The above table shows the PE ratio for TH * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.3x
RLH A RLH Properties. de
30.9xn/aMex$18.4b
HOTEL * Grupo Hotelero Santa Fe. de
34.9x35.1%Mex$2.8b
HCITY * Hoteles City Express. de
18.2x45.5%Mex$2.0b
CIDMEGA * Grupe. de
17.2xn/aMex$2.2b
TH * Target Hospitality
6.2x-58.6%Mex$752.2m

Price-To-Earnings vs Peers: TH * is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (25.3x).


Price to Earnings Ratio vs Industry

How does TH *'s PE Ratio compare vs other companies in the South American Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TH * is good value based on its Price-To-Earnings Ratio (6.2x) compared to the South American Hospitality industry average (17.2x).


Price to Earnings Ratio vs Fair Ratio

What is TH *'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.

TH * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TH *'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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