Pak Suzuki Motor Valuation

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

PSMC (PKR609) is trading below our estimate of [[fair value]] (PKR763.9)

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

Below Fair Value: PSMC (PKR609) is trading below our estimate of fair value (PKR763.9)

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

Key Valuation Metric

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

Key metric: As PSMC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for PSMC. This is calculated by dividing PSMC's market cap by their current revenue.
What is PSMC's PS Ratio?
PS Ratio	0.5x
Sales	PK₨99.83b
Market Cap	PK₨50.12b

PSMC 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	0.5x
Enterprise Value/EBITDA	3.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PSMC's PS Ratio compare to its peers?

The above table shows the PS ratio for PSMC 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	0.9x
HCAR Honda Atlas Cars (Pakistan)	0.5x	n/a	PK₨37.5b
GAL Ghandhara Automobiles	1.2x	43.4%	PK₨14.1b
GHNI Ghandhara Industries	0.9x	n/a	PK₨16.8b
INDU Indus Motor	1x	n/a	PK₨157.0b
PSMC Pak Suzuki Motor	0.5x	n/a	PK₨50.1b

Price-To-Sales vs Peers: PSMC is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does PSMC's PS Ratio compare vs other companies in the Asian Auto Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: PSMC is good value based on its Price-To-Sales Ratio (0.5x) compared to the Asian Auto industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is PSMC'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.

PSMC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PSMC'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?

The above table shows the analyst PSMC forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Nov ’25	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Oct ’25	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Sep ’25	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Aug ’25	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Jul ’25	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Jun ’25	n/a	PK₨154.50 0%	31.4%	PK₨230.00	PK₨100.00	n/a	4
May ’25	PK₨609.00	PK₨154.50 -74.6%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Apr ’25	PK₨609.00	PK₨154.50 -74.6%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Mar ’25	PK₨609.01	PK₨154.50 -74.6%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Feb ’25	PK₨609.00	PK₨154.50 -74.6%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Jan ’25	PK₨585.32	PK₨154.50 -73.6%	31.4%	PK₨230.00	PK₨100.00	n/a	4
Dec ’24	PK₨545.29	PK₨144.46 -73.5%	33.1%	PK₨230.00	PK₨100.00	n/a	5
Nov ’24	PK₨394.85	PK₨147.05 -62.8%	29.9%	PK₨230.00	PK₨100.00	n/a	6
Oct ’24	PK₨123.17	PK₨132.05 +7.2%	18.1%	PK₨160.00	PK₨100.00	n/a	6
Sep ’24	PK₨105.84	PK₨132.05 +24.8%	18.1%	PK₨160.00	PK₨100.00	n/a	6
Aug ’24	PK₨131.44	PK₨133.72 +1.7%	16.4%	PK₨160.00	PK₨104.30	n/a	6
Jul ’24	PK₨95.20	PK₨157.61 +65.6%	29.4%	PK₨254.00	PK₨104.30	n/a	7
Jun ’24	PK₨95.85	PK₨166.50 +73.7%	26.5%	PK₨254.00	PK₨110.00	n/a	6
May ’24	PK₨106.60	PK₨173.00 +62.3%	26.3%	PK₨254.00	PK₨110.00	PK₨609.00	6
Apr ’24	PK₨106.16	PK₨180.67 +70.2%	20.8%	PK₨254.00	PK₨140.00	PK₨609.00	6
Mar ’24	PK₨122.03	PK₨180.38 +47.8%	17.8%	PK₨254.00	PK₨140.00	PK₨609.01	8
Feb ’24	PK₨134.00	PK₨180.38 +34.6%	17.8%	PK₨254.00	PK₨140.00	PK₨609.00	8
Jan ’24	PK₨170.77	PK₨194.77 +14.1%	18.3%	PK₨254.00	PK₨145.00	PK₨585.32	8
Dec ’23	PK₨154.50	PK₨186.31 +20.6%	16.0%	PK₨239.14	PK₨145.00	PK₨545.29	7
Nov ’23	PK₨159.07	PK₨216.14 +35.9%	20.3%	PK₨305.00	PK₨165.00	PK₨394.85	8

Analyst Forecast: Target price is lower than the current share price.