Japan Foods Holding Valuation

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

5OI (SGD0.3) is trading below our estimate of [[fair value]] (SGD1.87)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: 5OI (SGD0.3) is trading below our estimate of fair value (SGD1.87)

Significantly Below Fair Value: 5OI is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for 5OI. This is calculated by dividing 5OI's market cap by their current revenue.
What is 5OI's PS Ratio?
PS Ratio	0.6x
Sales	S$86.82m
Market Cap	S$52.11m

5OI 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	1x
Enterprise Value/EBITDA	82x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for 5OI 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	0.9x
DRX ST Group Food Industries Holdings	0.6x	n/a	S$36.5m
533 ABR Holdings	0.6x	n/a	S$80.4m
540 Tung Lok Restaurants (2000)	0.4x	n/a	S$31.6m
596 Pavillon Holdings	1.9x	n/a	S$33.0m
5OI Japan Foods Holding	0.6x	8.1%	S$52.1m

Price-To-Sales vs Peers: 5OI is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does 5OI's PS Ratio compare vs other companies in the SG Hospitality Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
540 Tung Lok Restaurants (2000)	0.4x	n/a	US$23.44m
1A0 Katrina Group	0.2x	n/a	US$7.26m
KUH TSH	0.3x	n/a	US$2.66m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 5OI is good value based on its Price-To-Sales Ratio (0.6x) compared to the SG Hospitality industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 5OI'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.

5OI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	1x

Price-To-Sales vs Fair Ratio: 5OI is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1x).

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.