We’ve recently updated our valuation analysis.

Sanford Valuation

Is SAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SAN 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/Revenue1.1x
Enterprise Value/EBITDA11.3x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23x
LIC Livestock Improvement
21.3xn/aNZ$177.9m
SML Synlait Milk
20x19.9%NZ$756.3m
FCG Fonterra Co-operative Group
6.3xn/aNZ$4.2b
ATM a2 Milk
44.3x18.6%NZ$5.4b
SAN Sanford
7.1x-11.7%NZ$389.0m

Price-To-Earnings vs Peers: SAN is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (23x).


Price to Earnings Ratio vs Industry

How does SAN's PE Ratio compare vs other companies in the Oceanian Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a

Price-To-Earnings vs Industry: SAN is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Oceanic Food industry average (14.3x)


Price to Earnings Ratio vs Fair Ratio

What is SAN'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.

SAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: SAN is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).


Share Price vs Fair Value

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

Below Fair Value: SAN (NZ$4.22) is trading below our estimate of fair value (NZ$14.77)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNZ$4.22
NZ$4.58
+8.4%
4.9%NZ$4.80NZ$4.35n/a2
Jan ’24NZ$4.10
NZ$4.58
+11.6%
4.9%NZ$4.80NZ$4.35n/a2
Dec ’23NZ$4.40
NZ$4.58
+4.0%
4.9%NZ$4.80NZ$4.35n/a2
Nov ’23NZ$4.08
NZ$4.58
+12.1%
9.3%NZ$5.00NZ$4.15n/a2
Oct ’23NZ$4.18
NZ$4.58
+9.4%
9.3%NZ$5.00NZ$4.15n/a2
Sep ’23NZ$4.40
NZ$4.58
+4.0%
9.3%NZ$5.00NZ$4.15n/a2
Aug ’23NZ$4.12
NZ$4.15
+0.7%
0%NZ$4.15NZ$4.15n/a1
Jul ’23NZ$4.18
NZ$4.15
-0.7%
0%NZ$4.15NZ$4.15n/a1
Jun ’23NZ$4.25
NZ$4.15
-2.4%
0%NZ$4.15NZ$4.15n/a1
May ’23NZ$4.53
NZ$4.30
-5.1%
0%NZ$4.30NZ$4.30n/a1
Apr ’23NZ$4.73
NZ$4.30
-9.1%
0%NZ$4.30NZ$4.30n/a1
Mar ’23NZ$4.45
NZ$4.30
-3.4%
0%NZ$4.30NZ$4.30n/a1
Feb ’23NZ$4.60
NZ$4.30
-6.5%
0%NZ$4.30NZ$4.30n/a1
Jan ’23NZ$4.85
NZ$4.30
-11.3%
0%NZ$4.30NZ$4.30NZ$4.101
Dec ’22NZ$4.98
NZ$5.05
+1.4%
15.8%NZ$5.85NZ$4.25NZ$4.402
Nov ’22NZ$5.11
NZ$4.93
-3.6%
18.8%NZ$5.85NZ$4.00NZ$4.082
Oct ’22NZ$5.07
NZ$4.93
-2.9%
18.8%NZ$5.85NZ$4.00NZ$4.182
Sep ’22NZ$5.40
NZ$4.93
-8.8%
18.8%NZ$5.85NZ$4.00NZ$4.402
Aug ’22NZ$4.99
NZ$4.93
-1.3%
18.8%NZ$5.85NZ$4.00NZ$4.122
Jul ’22NZ$5.11
NZ$4.93
-3.6%
18.8%NZ$5.85NZ$4.00NZ$4.182
Jun ’22NZ$4.95
NZ$4.93
-0.5%
18.8%NZ$5.85NZ$4.00NZ$4.252
May ’22NZ$4.62
NZ$5.00
+8.2%
20.0%NZ$6.00NZ$4.00NZ$4.532
Apr ’22NZ$4.64
NZ$5.50
+18.5%
27.3%NZ$7.00NZ$4.00NZ$4.732
Mar ’22NZ$4.40
NZ$5.80
+31.8%
20.7%NZ$7.00NZ$4.60NZ$4.452
Feb ’22NZ$4.83
NZ$6.10
+26.3%
14.8%NZ$7.00NZ$5.20NZ$4.602
Jan ’22NZ$5.23
NZ$6.10
+16.6%
14.8%NZ$7.00NZ$5.20NZ$4.852

Analyst Forecast: Target price is less than 20% higher than the current share price.


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