Velan Inc.

OTCPK:VLNS.F Stock Report

Market Cap: US$176.5m

Velan Valuation

Is VLNS.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 VLNS.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VLNS.F ($7.76) is trading below our estimate of fair value ($206.23)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VLNS.F?

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

The above table shows the Price to Sales ratio for VLNS.F. This is calculated by dividing VLNS.F's market cap by their current revenue.
What is VLNS.F's PS Ratio?
PS Ratio0.5x
SalesUS$374.99m
Market CapUS$176.47m

Price to Sales Ratio vs Peers

How does VLNS.F's PS Ratio compare to its peers?

The above table shows the PS ratio for VLNS.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
EML Eastern
0.6xn/aUS$176.5m
HURC Hurco Companies
0.8xn/aUS$146.1m
NNBR NN
0.4x2.3%US$197.8m
MUEL Paul Mueller
0.8xn/aUS$188.1m
VLNS.F Velan
0.5xn/aUS$246.7m

Price-To-Sales vs Peers: VLNS.F is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does VLNS.F's PS Ratio compare vs other companies in the US Machinery Industry?

22 CompaniesPrice / SalesEstimated GrowthMarket Cap
HY Hyster-Yale
0.2x-0.6%US$993.19m
TWI Titan International
0.3x2.2%US$460.92m
PKOH Park-Ohio Holdings
0.3x3.9%US$441.47m
MTW Manitowoc Company
0.2x2.4%US$379.72m
VLNS.F 0.5xIndustry Avg. 1.7xNo. of Companies28PS01.63.24.86.48+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VLNS.F is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Machinery industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is VLNS.F'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.

VLNS.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate VLNS.F'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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