Zaklady Azotowe Pulawy Valuation

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

ZAP (PLN45) is trading below our estimate of [[fair value]] (PLN2453.03)

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

Below Fair Value: ZAP (PLN45) is trading below our estimate of fair value (PLN2453.03)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ZAP. This is calculated by dividing ZAP's market cap by their current revenue.
What is ZAP's PS Ratio?
PS Ratio	0.2x
Sales	zł3.58b
Market Cap	zł860.18m

ZAP 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	-6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ZAP 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	0.5x
ATT Grupa Azoty	0.2x	7.8%	zł2.0b
PCE Grupa Azoty Zaklady Chemiczne Police	0.4x	n/a	zł1.1b
SKA Fabryka Farb i Lakierów Sniezka	1.1x	8.4%	zł913.5m
SEL Selena FM	0.4x	n/a	zł724.9m
ZAP Zaklady Azotowe Pulawy	0.2x	n/a	zł860.2m

Price-To-Sales vs Peers: ZAP is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does ZAP's PS Ratio compare vs other companies in the European Chemicals Industry?

24 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.0x	4.4%
ZAP Zaklady Azotowe Pulawy	0.2x	n/a	US$207.53m

24 Companies		Estimated Growth	Market Cap
Industry Avg.	1.0x	21.8%
ZAP Zaklady Azotowe Pulawy	0.2x	n/a	US$207.53m

No more companies

Price-To-Sales vs Industry: ZAP is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is ZAP'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.

ZAP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

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

Grupa Azoty Zaklady Chemiczne Police

zł1.1b

Grupa Azoty Zaklady Chemiczne Police S.A.

PCE

zł9.26

-2.5%

-21.9%

IZOBLOK

zł54.7m

Provides expanded polypropylene (EPP) components to the automotive industry worldwide.

IZB

zł43.20

-2.3%

6.4%

Alumetal

zł1.3b

Alumetal S.A., together with its subsidiaries, manufactures and sells secondary aluminium casting alloys for the automotive industry in Poland, Germany, and other European countries.

AML

zł81.30

22.6%