Faran Sugar Mills Valuation

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

Below Fair Value: FRSM (PKR46.03) is trading above our estimate of fair value (PKR14.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for FRSM. This is calculated by dividing FRSM's market cap by their current revenue.
What is FRSM's PS Ratio?
PS Ratio	0.1x
Sales	PK₨10.98b
Market Cap	PK₨1.15b

FRSM 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	0.9x
Enterprise Value/EBITDA	7.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for FRSM 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	0.09x
SHJS Shahtaj Sugar Mills	0.1x	n/a	PK₨1.1b
CHAS Chashma Sugar Mills	0.05x	n/a	PK₨1.9b
BNL Bunny's	0.1x	n/a	PK₨977.4m
PMRS Premier Sugar Mills & Distillery	0.05x	n/a	PK₨1.7b
FRSM Faran Sugar Mills	0.1x	n/a	PK₨1.2b

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

Price to Sales Ratio vs Industry

How does FRSM's PS Ratio compare vs other companies in the PK Food Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap
CHAS Chashma Sugar Mills	0.05x	n/a	US$6.75m
PMRS Premier Sugar Mills & Distillery	0.05x	n/a	US$6.26m
ALNRS Al-Noor Sugar Mills	0.09x	n/a	US$5.83m
TCORP Tariq	0.1x	n/a	US$3.34m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: FRSM is good value based on its Price-To-Sales Ratio (0.1x) compared to the PK Food industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is FRSM'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.

FRSM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

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