Rectitude Holdings Valuation

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

RECT ($3.09) is trading below our estimate of [[fair value]] ($6.92)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: RECT ($3.09) is trading below our estimate of fair value ($6.92)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RECT. This is calculated by dividing RECT's market cap by their current preferred multiple.
What is RECT's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	S$58.29m

RECT 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	1.5x
Enterprise Value/EBITDA	13.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RECT 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	13.2x
YIBO Planet Image International	18.3x	n/a	US$152.5m
ARC ARC Document Solutions	18.5x	27.7%	US$145.8m
ACU Acme United	7.7x	-16.4%	US$154.5m
VIRC Virco Mfg	8.4x	2.2%	US$220.2m
RECT Rectitude Holdings	17.1x	n/a	US$45.5m

Price-To-Earnings vs Peers: RECT is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (13.2x).

Price to Earnings Ratio vs Industry

How does RECT's PE Ratio compare vs other companies in the US Commercial Services Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.7%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	14.7%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: RECT is good value based on its Price-To-Earnings Ratio (17.1x) compared to the US Commercial Services industry average (27.1x).

Price to Earnings Ratio vs Fair Ratio

What is RECT'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.

RECT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RECT'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.