Test-Rite International Valuation

Q: What is the Fair Price of 2908 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2908 (NT$20.15) is trading below our estimate of [[fair value]] (NT$65.64)

Is 2908 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-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 2908 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2908 (NT$20.15) is trading below our estimate of fair value (NT$65.64)

Significantly Below Fair Value: 2908 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2908?

Key metric: As 2908 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2908. This is calculated by dividing 2908's market cap by their current earnings.
What is 2908's PE Ratio?
PE Ratio	35.9x
Earnings	NT$286.12m
Market Cap	NT$10.27b

2908 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	0.8x
Enterprise Value/EBITDA	22.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2908's PE Ratio compare to its peers?

The above table shows the PE ratio for 2908 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	21.1x
2906 Collins	34.7x	n/a	NT$3.7b
2916 Munsin Garment	12.7x	n/a	NT$3.1b
9902 Tidehold Development	20.8x	n/a	NT$1.6b
6574 Mikobeaute International	16.3x	n/a	NT$1.2b
2908 Test-Rite International	35.9x	n/a	NT$10.3b

Price-To-Earnings vs Peers: 2908 is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (21.1x).

Price to Earnings Ratio vs Industry

How does 2908's PE Ratio compare vs other companies in the Asian Retail Distributors Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2908 is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the Asian Retail Distributors industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is 2908'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.

2908 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	35.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2908's Price-To-Earnings 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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