Southern Steel Berhad Valuation
Is SSTEEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
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 SSTEEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: SSTEEL (MYR0.57) is trading below our estimate of fair value (MYR4.39)
Significantly Below Fair Value: SSTEEL is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for SSTEEL?
Key metric: As SSTEEL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is SSTEEL's PS Ratio? | |
|---|---|
| PS Ratio | 0.2x |
| Sales | RM 2.22b |
| Market Cap | RM 339.85m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.5x |
| Enterprise Value/EBITDA | 72.1x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does SSTEEL's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 0.5x | ||
CSCSTEL CSC Steel Holdings Berhad | 0.3x | 0.2% | RM 439.5m |
ANNJOO Ann Joo Resources Berhad | 0.2x | 5.2% | RM 482.8m |
LEFORM Leform Berhad | 0.6x | n/a | RM 222.2m |
BWYS BWYS Group Berhad | 1x | n/a | RM 256.3m |
SSTEEL Southern Steel Berhad | 0.2x | n/a | RM 339.8m |
Price-To-Sales vs Peers: SSTEEL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.5x).
Price to Sales Ratio vs Industry
How does SSTEEL's PS Ratio compare vs other companies in the MY Metals and Mining Industry?
| 4 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
MASTEEL Malaysia Steel Works (KL) Bhd | 0.09x | n/a | US$47.14m |
LIONIND Lion Industries Corporation Berhad | 0.09x | n/a | US$35.03m |
ARANK A-Rank Berhad | 0.1x | n/a | US$21.20m |
MELEWAR Melewar Industrial Group Berhad | 0.1x | n/a | US$18.50m |
| 4 Companies | Estimated Growth | Market Cap |
|---|
Price-To-Sales vs Industry: SSTEEL is good value based on its Price-To-Sales Ratio (0.2x) compared to the MY Metals and Mining industry average (0.5x).
Price to Sales Ratio vs Fair Ratio
What is SSTEEL'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.2x |
| Fair PS Ratio | n/a |
Price-To-Sales vs Fair Ratio: Insufficient data to calculate SSTEEL's Price-To-Sales 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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