Dewan Farooque Spinning Mills Limited

KASE:DFSM Stock Report

Market Cap: PK₨439.9m

Dewan Farooque Spinning Mills Valuation

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

Below Fair Value: DFSM (PKR4.5) is trading above our estimate of fair value (PKR2.26)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DFSM. This is calculated by dividing DFSM's market cap by their current revenue.
What is DFSM's PS Ratio?
PS Ratio0.9x
SalesPK₨516.96m
Market CapPK₨439.88m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DFSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
JDMT Janana De Malucho Textile Mills
0.08xn/aPK₨430.8m
OML Olympia Mills
3.2xn/aPK₨399.0m
GFIL Ghazi Fabrics International
0.08xn/aPK₨346.3m
SAIF Saif Textile Mills
0.03xn/aPK₨414.7m
DFSM Dewan Farooque Spinning Mills
0.9xn/aPK₨439.9m

Price-To-Sales vs Peers: DFSM is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (0.9x).


Price to Sales Ratio vs Industry

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

30 CompaniesPrice / SalesEstimated GrowthMarket Cap
IDYM Indus Dyeing & Manufacturing
0.07xn/aUS$26.53m
GADT Gadoon Textile Mills
0.1xn/aUS$25.36m
FZCM Fazal Cloth Mills
0.05xn/aUS$17.83m
MSOT Masood Textile Mills
0.06xn/aUS$12.62m
DFSM 0.9xIndustry Avg. 0.1xNo. of Companies30PS00.40.81.21.62+
30 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DFSM is expensive based on its Price-To-Sales Ratio (0.9x) compared to the PK Luxury industry average (0.1x).


Price to Sales Ratio vs Fair Ratio

What is DFSM'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.

DFSM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ration/a

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


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