Cogent Communications Holdings Valuation

Q: What is the Fair Price of CCOI * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CCOI * (MX$1179.01) is trading below our estimate of [[fair value]] (MX$1952.75)

Is CCOI * 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CCOI * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CCOI * (MX$1179.01) is trading below our estimate of fair value (MX$1952.75)

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

Key Valuation Metric

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

Key metric: As CCOI * is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CCOI *. This is calculated by dividing CCOI *'s market cap by their current revenue.
What is CCOI *'s PS Ratio?
PS Ratio	5.1x
Sales	US$588.12m
Market Cap	US$2.99b

CCOI * 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	7.2x
Enterprise Value/EBITDA	20.4x
PEG Ratio	6.5x

Price to Sales Ratio vs Peers

How does CCOI *'s PS Ratio compare to its peers?

The above table shows the PS ratio for CCOI * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	4.1x
SITES1 A-1 Operadora de Sites Mexicanos. de	3.5x	5.7%	Mex$45.0b
LASITE B-1 Sitios Latinoamérica. de	0.7x	14.9%	Mex$10.1b
CJLU NetLink NBN Trust	8.1x	1.8%	S$3.4b
CNU Chorus	3.9x	4.0%	NZ$3.9b
CCOI * Cogent Communications Holdings	5.1x	14.0%	Mex$3.0b

Price-To-Sales vs Peers: CCOI * is good value based on its Price-To-Sales Ratio (5.1x) compared to the peer average (7.4x).

Price to Sales Ratio vs Industry

How does CCOI *'s PS Ratio compare vs other companies in the Global Telecom Industry?

32 Companies	Price / Sales	Estimated Growth	Market Cap

32 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: CCOI * is expensive based on its Price-To-Sales Ratio (5.1x) compared to the Global Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is CCOI *'s PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CCOI * PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	5.1x
Fair PS Ratio	2.9x

Price-To-Sales vs Fair Ratio: CCOI * is expensive based on its Price-To-Sales Ratio (5.1x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).

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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