Japfa Valuation

Is UD2 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-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 UD2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UD2 (SGD0.38) is trading below our estimate of fair value (SGD4.1)

Significantly Below Fair Value: UD2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UD2?

Key metric: As UD2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for UD2. This is calculated by dividing UD2's market cap by their current earnings.
What is UD2's PE Ratio?
PE Ratio	7.2x
Earnings	US$79.40m
Market Cap	US$574.17m

UD2 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	0.5x
Enterprise Value/EBITDA	5.3x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does UD2's PE Ratio compare to its peers?

The above table shows the PE ratio for UD2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	9.1x
Q01 QAF	13.6x	n/a	S$477.5m
P34 Delfi	9.1x	4.5%	S$498.1m
F03 Food Empire Holdings	7.3x	4.8%	S$526.0m
MV4 Mewah International	6.2x	n/a	S$412.7m
UD2 Japfa	7.2x	21.2%	S$774.1m

Price-To-Earnings vs Peers: UD2 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does UD2's PE Ratio compare vs other companies in the Asian Food Industry?

26 Companies	Price / Earnings	Estimated Growth	Market Cap

26 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: UD2 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the Asian Food industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is UD2'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.

UD2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.2x
Fair PE Ratio	12.1x

Price-To-Earnings vs Fair Ratio: UD2 is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst UD2 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	S$0.38	S$0.54 +43.4%	2.9%	S$0.56	S$0.53	n/a	2
Nov ’25	S$0.39	S$0.54 +39.7%	2.9%	S$0.56	S$0.53	n/a	2
Oct ’25	S$0.39	S$0.46 +19.5%	6.5%	S$0.49	S$0.43	n/a	2
Sep ’25	S$0.35	S$0.46 +31.0%	6.7%	S$0.49	S$0.43	n/a	2
Aug ’25	S$0.34	S$0.41 +22.2%	9.8%	S$0.45	S$0.37	n/a	2
Oct ’24	S$0.21	S$0.21 -0.6%	6.3%	S$0.23	S$0.20	S$0.39	2
Sep ’24	S$0.23	S$0.21 -9.0%	6.3%	S$0.23	S$0.20	S$0.35	2
Aug ’24	S$0.23	S$0.21 -5.0%	6.3%	S$0.23	S$0.20	S$0.34	2
Jul ’24	S$0.21	S$0.21 -0.7%	6.3%	S$0.23	S$0.20	S$0.33	2
Jun ’24	S$0.23	S$0.21 -5.1%	6.3%	S$0.23	S$0.20	S$0.32	2
May ’24	S$0.21	S$0.21 +1.7%	6.3%	S$0.23	S$0.20	S$0.30	2
Apr ’24	S$0.23	S$0.24 +2.4%	2.3%	S$0.24	S$0.23	S$0.26	2
Mar ’24	S$0.30	S$0.48 +60.3%	12.7%	S$0.54	S$0.42	S$0.21	2
Feb ’24	S$0.34	S$0.48 +41.5%	12.7%	S$0.54	S$0.42	S$0.20	2
Jan ’24	S$0.34	S$0.60 +73.4%	8.6%	S$0.65	S$0.55	S$0.22	2
Dec ’23	S$0.51	S$0.65 +26.7%	11.6%	S$0.72	S$0.57	S$0.23	2
Nov ’23	S$0.53	S$0.68 +29.1%	5.3%	S$0.72	S$0.65	S$0.21	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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