Shezan International Valuation

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

SHEZ (PKR104.07) is trading below our estimate of [[fair value]] (PKR431.29)

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

Below Fair Value: SHEZ (PKR104.07) is trading below our estimate of fair value (PKR431.29)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SHEZ. This is calculated by dividing SHEZ's market cap by their current revenue.
What is SHEZ's PS Ratio?
PS Ratio	0.1x
Sales	PK₨8.34b
Market Cap	PK₨1.01b

SHEZ 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	32.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SHEZ 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	0.2x
POML Punjab Oil Mills	0.1x	n/a	PK₨880.3m
TCORP Tariq	0.1x	n/a	PK₨958.7m
HRPL Habib Rice Products	0.6x	n/a	PK₨1.3b
NONS Noon Sugar Mills	0.1x	n/a	PK₨1.3b
SHEZ Shezan International	0.1x	n/a	PK₨1.0b

Price-To-Sales vs Peers: SHEZ is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.2x).

Price to Sales Ratio vs Industry

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

6 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$6.67m
ALNRS Al-Noor Sugar Mills	0.09x	n/a	US$5.89m
ADAMS Adam Sugar Mills	0.09x	n/a	US$3.23m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SHEZ 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 SHEZ'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.

SHEZ 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 SHEZ'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.

Discover undervalued companies

Organic Meat

PK₨5.1b

Engages in processing and sale of meat and meat by products in Pakistan and internationally.

TOMCL

PK₨34.51

-5.7%

50.3%

Dewan Sugar Mills

PK₨526.2m

Engages in the production and sale of white crystalline refined sugar in Pakistan.

DWSM

PK₨5.75

3.8%

136.6%

Mehran Sugar Mills

PK₨3.5b

Mehran Sugar Mills Limited manufacture and sale of sugar and its by-products in Pakistan.

MRNS

PK₨46.77

4.0%

-22.1%