Downer EDI Valuation

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

Below Fair Value: DNER.F ($3.01) is trading below our estimate of fair value ($4.76)

Significantly Below Fair Value: DNER.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 DNER.F?

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

The above table shows the Price to Sales ratio for DNER.F. This is calculated by dividing DNER.F's market cap by their current revenue.
What is DNER.F's PS Ratio?
PS Ratio	0.3x
Sales	AU$11.48b
Market Cap	AU$3.08b

DNER.F 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	0.4x
Enterprise Value/EBITDA	11.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DNER.F 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	1.4x
VSTS Vestis	0.8x	2.7%	US$2.1b
KAR OPENLANE	1.3x	5.1%	US$2.1b
VSEC VSE	2.3x	15.6%	US$2.4b
DRVN Driven Brands Holdings	1.2x	7.8%	US$2.7b
DNER.F Downer EDI	0.3x	2.4%	US$3.1b

Price-To-Sales vs Peers: DNER.F is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does DNER.F's PS Ratio compare vs other companies in the US Commercial Services Industry?

25 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.5x	7.2%
DNER.F Downer EDI	0.3x	2.4%	US$2.04b
NVRI Enviri	0.3x	4.6%	US$589.79m
ACCO ACCO Brands	0.3x	-0.006%	US$540.57m

25 Companies		Estimated Growth	Market Cap
Industry Avg.	1.5x	15.3%
DNER.F Downer EDI	0.3x	46.9%	US$2.04b

No more companies

Price-To-Sales vs Industry: DNER.F is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Commercial Services industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is DNER.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.

DNER.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate DNER.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.