Saudi Ceramic Valuation
Is 2040 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation 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 2040 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 2040 (SAR35.65) is trading above our estimate of fair value (SAR34.84)
Significantly Below Fair Value: 2040 is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 2040?
Key metric: As 2040 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is 2040's PS Ratio? | |
|---|---|
| PS Ratio | 2.6x |
| Sales | ر.س1.35b |
| Market Cap | ر.س3.54b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.3x |
| Enterprise Value/EBITDA | 48.3x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does 2040's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 4.3x | ||
1302 Bawan | 1x | 7.5% | ر.س2.9b |
9531 Al Obeikan Glass | 4.6x | n/a | ر.س1.6b |
9529 Raoom trading | 9.2x | n/a | ر.س1.2b |
9611 Arabian United Float Glass | 2.3x | n/a | ر.س629.1m |
2040 Saudi Ceramic | 2.6x | 7.1% | ر.س3.6b |
Price-To-Sales vs Peers: 2040 is good value based on its Price-To-Sales Ratio (2.6x) compared to the peer average (4.3x).
Price to Sales Ratio vs Industry
How does 2040's PS Ratio compare vs other companies in the Asian Building Industry?
| 16 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| 16 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Sales vs Industry: 2040 is expensive based on its Price-To-Sales Ratio (2.6x) compared to the Asian Building industry average (1x).
Price to Sales Ratio vs Fair Ratio
What is 2040'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 2.6x |
| Fair PS Ratio | 1.4x |
Price-To-Sales vs Fair Ratio: 2040 is expensive based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | ر.س35.65 | ر.س29.05 -18.5% | 23.9% | ر.س36.00 | ر.س22.10 | n/a | 2 |
| Nov ’25 | ر.س32.60 | ر.س27.80 -14.7% | 29.5% | ر.س36.00 | ر.س19.60 | n/a | 2 |
| Oct ’25 | ر.س32.60 | ر.س27.80 -14.7% | 29.5% | ر.س36.00 | ر.س19.60 | n/a | 2 |
| Sep ’25 | ر.س30.35 | ر.س27.80 -8.4% | 29.5% | ر.س36.00 | ر.س19.60 | n/a | 2 |
| Aug ’25 | ر.س27.85 | ر.س29.36 +5.4% | 22.6% | ر.س36.00 | ر.س22.72 | n/a | 2 |
| Jul ’25 | ر.س28.70 | ر.س23.84 -16.9% | 15.4% | ر.س28.80 | ر.س20.00 | n/a | 3 |
| Jun ’25 | ر.س27.32 | ر.س23.31 -14.7% | 12.7% | ر.س27.20 | ر.س20.00 | n/a | 3 |
| May ’25 | ر.س28.28 | ر.س24.53 -13.2% | 13.1% | ر.س27.20 | ر.س20.00 | n/a | 3 |
| Apr ’25 | ر.س27.16 | ر.س22.16 -18.4% | 16.1% | ر.س27.20 | ر.س19.28 | n/a | 3 |
| Mar ’25 | ر.س24.76 | ر.س22.16 -10.5% | 16.1% | ر.س27.20 | ر.س19.28 | n/a | 3 |
| Feb ’25 | ر.س20.80 | ر.س22.16 +6.5% | 16.1% | ر.س27.20 | ر.س19.28 | n/a | 3 |
| Jan ’25 | ر.س22.36 | ر.س22.16 -0.9% | 16.1% | ر.س27.20 | ر.س19.28 | n/a | 3 |
| Dec ’24 | ر.س21.40 | ر.س23.24 +8.6% | 17.0% | ر.س27.20 | ر.س19.28 | n/a | 2 |
| Nov ’24 | ر.س19.02 | ر.س24.45 +28.5% | 9.4% | ر.س27.20 | ر.س21.60 | ر.س32.60 | 3 |
| Oct ’24 | ر.س22.40 | ر.س24.45 +9.2% | 9.4% | ر.س27.20 | ر.س21.60 | ر.س32.60 | 3 |
| Sep ’24 | ر.س23.24 | ر.س24.45 +5.2% | 9.4% | ر.س27.20 | ر.س21.60 | ر.س30.35 | 3 |
| Aug ’24 | ر.س24.20 | ر.س24.45 +1.0% | 9.4% | ر.س27.20 | ر.س21.60 | ر.س27.85 | 3 |
| Jul ’24 | n/a | ر.س26.91 0% | 20.3% | ر.س34.40 | ر.س21.60 | ر.س28.70 | 3 |
| Jun ’24 | ر.س25.08 | ر.س26.91 +7.3% | 20.3% | ر.س34.40 | ر.س21.60 | ر.س27.32 | 3 |
| May ’24 | ر.س25.48 | ر.س30.11 +18.2% | 11.9% | ر.س34.40 | ر.س25.60 | ر.س28.28 | 3 |
| Apr ’24 | ر.س25.12 | ر.س33.05 +31.6% | 16.2% | ر.س38.40 | ر.س25.60 | ر.س27.16 | 4 |
| Mar ’24 | ر.س24.08 | ر.س33.11 +37.5% | 16.1% | ر.س38.40 | ر.س25.60 | ر.س24.76 | 4 |
| Feb ’24 | ر.س24.48 | ر.س33.11 +35.3% | 16.1% | ر.س38.40 | ر.س25.60 | ر.س20.80 | 4 |
| Jan ’24 | ر.س23.20 | ر.س33.11 +42.7% | 16.1% | ر.س38.40 | ر.س25.60 | ر.س22.36 | 4 |
| Dec ’23 | ر.س25.48 | ر.س36.36 +42.7% | 7.0% | ر.س38.40 | ر.س32.80 | ر.س21.40 | 3 |
| Nov ’23 | ر.س32.16 | ر.س38.76 +20.5% | 13.6% | ر.س45.60 | ر.س32.80 | ر.س19.02 | 3 |
Analyst Forecast: Target price is lower than the current share price.