Megachem Valuation

Q: What is the Fair Price of 5DS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

5DS (SGD0.39) is trading above our estimate of [[fair value]] (SGD0.29)

Is 5DS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 5DS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5DS (SGD0.39) is trading above our estimate of fair value (SGD0.29)

Significantly Below Fair Value: 5DS is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5DS?

Key metric: As 5DS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 5DS. This is calculated by dividing 5DS's market cap by their current revenue.
What is 5DS's PS Ratio?
PS Ratio	0.4x
Sales	S$127.50m
Market Cap	S$51.32m

5DS 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	0.6x
Enterprise Value/EBITDA	-6.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 5DS's PS Ratio compare to its peers?

The above table shows the PS ratio for 5DS 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	0.8x
BTG HG Metal Manufacturing	0.3x	n/a	S$52.1m
BKA Sin Heng Heavy Machinery	1x	n/a	S$57.1m
I06 Intraco	0.2x	n/a	S$40.9m
V7R Resources Global Development	1.6x	n/a	S$107.5m
5DS Megachem	0.4x	n/a	S$51.3m

Price-To-Sales vs Peers: 5DS is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does 5DS's PS Ratio compare vs other companies in the SG Trade Distributors Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap
541 Abundance International	0.02x	n/a	US$17.17m

No more companies available in this PS range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 5DS is good value based on its Price-To-Sales Ratio (0.4x) compared to the Asian Trade Distributors industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is 5DS'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.

5DS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 5DS'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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