Colony Textile Mills Valuation

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

CTM (PKR4.95) is trading below our estimate of [[fair value]] (PKR12.91)

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

Below Fair Value: CTM (PKR4.95) is trading below our estimate of fair value (PKR12.91)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for CTM. This is calculated by dividing CTM's market cap by their current revenue.
What is CTM's PS Ratio?
PS Ratio	0.2x
Sales	PK₨13.60b
Market Cap	PK₨2.47b

CTM 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	0.9x
Enterprise Value/EBITDA	-5.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CTM 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	0.3x
WAVESAPP Waves Home Appliances	1x	n/a	PK₨3.3b
REWM Reliance Weaving Mills	0.09x	n/a	PK₨3.5b
TOWL Towellers	0.2x	n/a	PK₨2.4b
MSOT Masood Textile Mills	0.06x	n/a	PK₨3.2b
CTM Colony Textile Mills	0.2x	n/a	PK₨2.5b

Price-To-Sales vs Peers: CTM is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does CTM's PS Ratio compare vs other companies in the PK Luxury Industry?

35 Companies	Price / Sales	Estimated Growth	Market Cap
GATM Gul Ahmed Textile Mills	0.09x	n/a	US$59.34m
NCL Nishat (Chunian)	0.09x	n/a	US$29.62m
IDYM Indus Dyeing & Manufacturing	0.06x	n/a	US$22.64m
GADT Gadoon Textile Mills	0.08x	n/a	US$20.19m

35 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: CTM is expensive based on its Price-To-Sales Ratio (0.2x) compared to the PK Luxury industry average (0.1x).

Price to Sales Ratio vs Fair Ratio

What is CTM'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.

CTM 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 CTM'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.