2 Cheap Cars Group Limited

NZSE:2CC Stock Report

Market Cap: NZ$36.0m

2 Cheap Cars Group Valuation

Is 2CC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 2CC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2CC (NZ$0.79) is trading below our estimate of fair value (NZ$1.26)

Significantly Below Fair Value: 2CC is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2CC?

Key metric: As 2CC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2CC. This is calculated by dividing 2CC's market cap by their current earnings.
What is 2CC's PE Ratio?
PE Ratio7.6x
EarningsNZ$4.76m
Market CapNZ$35.99m

Price to Earnings Ratio vs Peers

How does 2CC's PE Ratio compare to its peers?

The above table shows the PE ratio for 2CC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
CMO Colonial Motor
47.3xn/aNZ$214.5m
TRA Turners Automotive Group
14.1x9.4%NZ$474.9m
HLG Hallenstein Glasson Holdings
12.3x4.8%NZ$425.9m
3352 BuffaloLtd
24xn/aJP¥2.9b
2CC 2 Cheap Cars Group
7.6xn/aNZ$36.0m

Price-To-Earnings vs Peers: 2CC is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (24.4x).


Price to Earnings Ratio vs Industry

How does 2CC's PE Ratio compare vs other companies in the Oceanian Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2CC 7.6xIndustry Avg. 16.8xNo. of Companies5PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2CC is good value based on its Price-To-Earnings Ratio (7.6x) compared to the Oceanic Specialty Retail industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is 2CC'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.

2CC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2CC'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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