Tata Textile Mills Valuation

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

TATM (PKR49.17) is trading below our estimate of [[fair value]] (PKR448.06)

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

Below Fair Value: TATM (PKR49.17) is trading below our estimate of fair value (PKR448.06)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TATM. This is calculated by dividing TATM's market cap by their current revenue.
What is TATM's PS Ratio?
PS Ratio	0.06x
Sales	PK₨44.17b
Market Cap	PK₨2.75b

TATM 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	0.3x
Enterprise Value/EBITDA	4.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TATM 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	0.1x
FASM Faisal Spinning Mills	0.05x	n/a	PK₨2.3b
BHAT Bhanero Textile Mills	0.07x	n/a	PK₨2.4b
TOWL Towellers	0.2x	n/a	PK₨2.4b
DINT Din Textile Mills	0.07x	n/a	PK₨2.9b
TATM Tata Textile Mills	0.06x	n/a	PK₨2.8b

Price-To-Sales vs Peers: TATM is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.1x).

Price to Sales Ratio vs Industry

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

37 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.1x	11.6%
TATM Tata Textile Mills	0.06x	n/a	US$9.91m
GATM Gul Ahmed Textile Mills	0.09x	n/a	US$56.57m
NCL Nishat (Chunian)	0.08x	n/a	US$26.79m

37 Companies		Estimated Growth	Market Cap
Industry Avg.	0.1x	18.2%
TATM Tata Textile Mills	0.06x	n/a	US$9.91m

No more companies

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

Price to Sales Ratio vs Fair Ratio

What is TATM'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.

TATM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.06x
Fair PS Ratio	n/a

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