RaySearch Laboratories AB (publ)

OM:RAY B Stock Report

Market Cap: SEK 6.4b

RaySearch Laboratories Valuation

Is RAY B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: RAY B (SEK194) is trading below our estimate of fair value (SEK502.85)

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

Key Valuation Metric

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

Key metric: As RAY B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RAY B. This is calculated by dividing RAY B's market cap by their current earnings.
What is RAY B's PE Ratio?
PE Ratio44x
EarningsSEK 151.22m
Market CapSEK 6.41b

Price to Earnings Ratio vs Peers

How does RAY B's PE Ratio compare to its peers?

The above table shows the PE ratio for RAY B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average83.9x
SYNT SyntheticMR
115.3x47.4%SEK 1.2b
SECT B Sectra
122.7x21.2%SEK 54.9b
PTRK Physitrack
4.5xn/aSEK 130.1m
KONT Kontigo Care
93x99.6%SEK 103.8m
RAY B RaySearch Laboratories
44x26.2%SEK 6.4b

Price-To-Earnings vs Peers: RAY B is good value based on its Price-To-Earnings Ratio (44x) compared to the peer average (83.9x).

Price to Earnings Ratio vs Industry

How does RAY B's PE Ratio compare vs other companies in the European Healthcare Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RAY B 44.0xIndustry Avg. 18.2xNo. of Companies4PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RAY B is expensive based on its Price-To-Earnings Ratio (44x) compared to the European Healthcare Services industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is RAY B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RAY B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio44x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: RAY B is expensive based on its Price-To-Earnings Ratio (44x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).

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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