Gadoon Textile Mills Limited

KASE:GADT Stock Report

Market Cap: PK₨7.0b

Gadoon Textile Mills Valuation

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

Below Fair Value: GADT (PKR251.48) is trading below our estimate of fair value (PKR1228.61)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GADT. This is calculated by dividing GADT's market cap by their current earnings.
What is GADT's PE Ratio?
PE Ratio7.5x
EarningsPK₨944.72m
Market CapPK₨7.05b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GADT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.9x
RCML Reliance Cotton Spinning Mills
4.5xn/aPK₨6.6b
SURC Suraj Cotton Mills
6.3xn/aPK₨6.0b
JKSM J.K. Spinning Mills
7.2xn/aPK₨6.2b
ZAHID Zahidjee Textile Mills
9.5xn/aPK₨5.7b
GADT Gadoon Textile Mills
7.5xn/aPK₨7.0b

Price-To-Earnings vs Peers: GADT is expensive based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (6.9x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BNWM Bannu Woollen Mills
1xn/aUS$1.29m
No more companies available in this PE range
GADT 7.5xIndustry Avg. 9.4xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GADT is good value based on its Price-To-Earnings Ratio (7.5x) compared to the PK Luxury industry average (9.4x).


Price to Earnings Ratio vs Fair Ratio

What is GADT'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.

GADT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ration/a

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


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