Chakwal Spinning Mills Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CWSM (PKR77.11) is trading above our estimate of fair value (PKR0.21)

Significantly Below Fair Value: CWSM is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As CWSM is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for CWSM. This is calculated by dividing CWSM's market cap by their current book value.
What is CWSM's PB Ratio?
PB Ratio	9.6x
Book	PK₨974.44m
Market Cap	PK₨9.37b

CWSM 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	n/a
Enterprise Value/EBITDA	-53922.4x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does CWSM's PB Ratio compare to its peers?

The above table shows the PB ratio for CWSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	65.3x
NCL Nishat (Chunian)	0.4x	n/a	PK₨7.9b
DSML Dar Es Salaam Textile Mills	259.8x	n/a	PK₨11.1b
RCML Reliance Cotton Spinning Mills	0.7x	n/a	PK₨7.1b
IDYM Indus Dyeing & Manufacturing	0.2x	n/a	PK₨6.5b
CWSM Chakwal Spinning Mills	9.6x	n/a	PK₨9.4b

Price-To-Book vs Peers: CWSM is good value based on its Price-To-Book Ratio (9.6x) compared to the peer average (65.3x).

Price to Book Ratio vs Industry

How does CWSM's PB Ratio compare vs other companies in the PK Luxury Industry?

10 Companies	Price / Book	Estimated Growth	Market Cap
FZCM Fazal Cloth Mills	0.09x	n/a	US$14.20m
TATM Tata Textile Mills	0.1x	n/a	US$9.64m
CRTM Crescent Textile Mills	0.1x	n/a	US$5.61m
CFL Crescent Fibres	0.1x	n/a	US$1.97m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: CWSM is expensive based on its Price-To-Book Ratio (9.6x) compared to the PK Luxury industry average (0.3x).

Price to Book Ratio vs Fair Ratio

What is CWSM's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CWSM PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	9.6x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate CWSM's Price-To-Book 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.