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$189.42)

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 *?

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

The above table shows the Price to Earnings ratio for TH *. This is calculated by dividing TH *'s market cap by their current earnings.
What is TH *'s PE Ratio?
PE Ratio	7.1x
Earnings	US$122.19m
Market Cap	US$871.74m

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/Revenue	1.9x
Enterprise Value/EBITDA	3.6x
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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.7x
RLH A RLH Properties. de	30.9x	n/a	Mex$18.4b
HOTEL * Grupo Hotelero Santa Fe. de	36.5x	35.6%	Mex$2.9b
HCITY * Hoteles City Express. de	18.4x	45.5%	Mex$1.9b
CIDMEGA * Grupe. de	17.1x	n/a	Mex$2.2b
TH * Target Hospitality	7.1x	-58.6%	Mex$871.7m

Price-To-Earnings vs Peers: TH * is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (25.4x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TH * is good value based on its Price-To-Earnings Ratio (7.1x) 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 Ratio	7.1x
Fair PE Ratio	n/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.