Ellcot Spinning Mills Valuation

Is ELSM 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ELSM (PKR98) is trading below our estimate of fair value (PKR134.51)

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

Key Valuation Metric

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

Key metric: As ELSM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ELSM. This is calculated by dividing ELSM's market cap by their current earnings.
What is ELSM's PE Ratio?
PE Ratio	5x
Earnings	PK₨216.65m
Market Cap	PK₨1.02b

ELSM 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	0.2x
Enterprise Value/EBITDA	2.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ELSM's PE Ratio compare to its peers?

The above table shows the PE ratio for ELSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	9.5x
NSRM National Silk & Rayon Mills	13.1x	n/a	PK₨933.2m
NAGC Nagina Cotton Mills	15.8x	n/a	PK₨935.9m
PRWM Prosperity Weaving Mills	6.5x	n/a	PK₨627.0m
KOHTM Kohat Textile Mills	2.5x	n/a	PK₨565.1m
ELSM Ellcot Spinning Mills	5x	n/a	PK₨1.0b

Price-To-Earnings vs Peers: ELSM is good value based on its Price-To-Earnings Ratio (5x) compared to the peer average (9.5x).

Price to Earnings Ratio vs Industry

How does ELSM's PE Ratio compare vs other companies in the PK Luxury Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
BNWM Bannu Woollen Mills	1x	n/a	US$1.25m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ELSM is good value based on its Price-To-Earnings Ratio (5x) compared to the PK Luxury industry average (8.1x).

Price to Earnings Ratio vs Fair Ratio

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

ELSM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ELSM's Price-To-Earnings 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.