Frontier Ceramics Valuation

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

FRCL (PKR17) is trading below our estimate of [[fair value]] (PKR17.69)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: FRCL (PKR17) is trading below our estimate of fair value (PKR17.69)

Significantly Below Fair Value: FRCL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for FRCL. This is calculated by dividing FRCL's market cap by their current revenue.
What is FRCL's PS Ratio?
PS Ratio	0.2x
Sales	PK₨3.64b
Market Cap	PK₨643.85m

FRCL 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	0.3x
Enterprise Value/EBITDA	4.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for FRCL 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	0.6x
KCL Karam Ceramics	0.8x	n/a	PK₨965.9m
STCL Shabbir Tiles and Ceramics	0.2x	n/a	PK₨3.4b
GVGL Ghani Value Glass	1.2x	n/a	PK₨6.3b
ORM Orient Rental Modaraba	0.3x	n/a	PK₨584.3m
FRCL Frontier Ceramics	0.2x	n/a	PK₨643.9m

Price-To-Sales vs Peers: FRCL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does FRCL's PS Ratio compare vs other companies in the Asian Building Industry?

16 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.0x	8.0%
FRCL Frontier Ceramics	0.2x	n/a	US$2.32m

16 Companies		Estimated Growth	Market Cap
Industry Avg.	1.0x	20.0%
FRCL Frontier Ceramics	0.2x	n/a	US$2.32m

No more companies

Price-To-Sales vs Industry: FRCL is good value based on its Price-To-Sales Ratio (0.2x) compared to the Asian Building industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is FRCL'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.

FRCL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate FRCL'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.