STI Education Systems Holdings Valuation

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

STI (₱1.29) is trading below our estimate of [[fair value]] (₱5.44)

Is STI 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 STI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STI (₱1.29) is trading below our estimate of fair value (₱5.44)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for STI. This is calculated by dividing STI's market cap by their current earnings.
What is STI's PE Ratio?
PE Ratio	6.6x
Earnings	₱1.83b
Market Cap	₱12.13b

STI 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	2.6x
Enterprise Value/EBITDA	5.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for STI 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	10.3x
FEU Far Eastern University	8.9x	n/a	₱17.1b
IPO iPeople	7.4x	n/a	₱6.4b
CEU Centro Escolar University	11x	n/a	₱5.3b
PIZZA Shakey's Pizza Asia Ventures	13.9x	18.4%	₱14.1b
STI STI Education Systems Holdings	6.6x	n/a	₱12.1b

Price-To-Earnings vs Peers: STI is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (10.3x).

Price to Earnings Ratio vs Industry

How does STI's PE Ratio compare vs other companies in the Asian Consumer Services Industry?

9 Companies	Price / Earnings	Estimated Growth	Market Cap

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: STI is good value based on its Price-To-Earnings Ratio (6.6x) compared to the Asian Consumer Services industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is STI'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.

STI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate STI'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.