We’ve recently updated our valuation analysis.

PriceSmart Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PSMT 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/Revenue0.5x
Enterprise Value/EBITDA9x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PSMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.7x
BJ BJ's Wholesale Club Holdings
19x7.1%US$9.4b
WMK Weis Markets
19xn/aUS$2.3b
IMKT.A Ingles Markets
6.4xn/aUS$1.8b
UNFI United Natural Foods
10.2x8.8%US$2.4b
PSMT PriceSmart
20.9x13.0%US$2.2b

Price-To-Earnings vs Peers: PSMT is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (13.7x).


Price to Earnings Ratio vs Industry

How does PSMT's PE Ratio compare vs other companies in the US Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
n/an/an/a

Price-To-Earnings vs Industry: PSMT is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the US Consumer Retailing industry average (19.8x)


Price to Earnings Ratio vs Fair Ratio

What is PSMT'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.

PSMT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: PSMT is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


Share Price vs Fair Value

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

Below Fair Value: PSMT ($71.89) is trading below our estimate of fair value ($86.52)

Significantly Below Fair Value: PSMT is trading below fair value, but not by a significant amount.


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 PSMT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.89
US$83.50
+16.1%
7.8%US$90.00US$77.00n/a2
Jan ’24US$60.78
US$83.50
+37.4%
7.8%US$90.00US$77.00n/a2
Dec ’23US$69.46
US$83.50
+20.2%
7.8%US$90.00US$77.00n/a2
Nov ’23US$68.43
US$93.00
+35.9%
3.2%US$96.00US$90.00n/a2
Oct ’23US$57.59
US$93.00
+61.5%
3.2%US$96.00US$90.00n/a2
Sep ’23US$62.69
US$93.00
+48.3%
3.2%US$96.00US$90.00n/a2
Aug ’23US$66.30
US$93.00
+40.3%
3.2%US$96.00US$90.00n/a2
Jul ’23US$72.95
US$95.00
+30.2%
5.3%US$100.00US$90.00n/a2
Jun ’23US$77.49
US$95.00
+22.6%
5.3%US$100.00US$90.00n/a2
May ’23US$79.45
US$95.00
+19.6%
5.3%US$100.00US$90.00n/a2
Apr ’23US$79.02
US$96.50
+22.1%
6.7%US$103.00US$90.00n/a2
Mar ’23US$72.01
US$96.50
+34.0%
6.7%US$103.00US$90.00n/a2
Feb ’23US$70.81
US$96.50
+36.3%
6.7%US$103.00US$90.00n/a2
Jan ’23US$73.17
US$103.00
+40.8%
0%US$103.00US$103.00US$60.781
Dec ’22US$71.04
US$103.00
+45.0%
0%US$103.00US$103.00US$69.461
Nov ’22US$72.92
US$103.00
+41.3%
0%US$103.00US$103.00US$68.431
Oct ’22US$77.38
US$103.00
+33.1%
0%US$103.00US$103.00US$57.591
Sep ’22US$84.47
US$103.00
+21.9%
0%US$103.00US$103.00US$62.691
Aug ’22US$89.74
US$103.00
+14.8%
0%US$103.00US$103.00US$66.301
Jul ’22US$91.46
US$103.00
+12.6%
0%US$103.00US$103.00US$72.951
Jun ’22US$90.18
US$103.00
+14.2%
0%US$103.00US$103.00US$77.491
May ’22US$84.04
US$103.00
+22.6%
0%US$103.00US$103.00US$79.451
Apr ’22US$97.77
US$103.00
+5.3%
0%US$103.00US$103.00US$79.021
Mar ’22US$97.66
US$103.00
+5.5%
0%US$103.00US$103.00US$72.011
Feb ’22US$93.81
US$103.00
+9.8%
0%US$103.00US$103.00US$70.811
Jan ’22US$91.09
US$80.00
-12.2%
0%US$80.00US$80.00US$73.171

Analyst Forecast: Target price is less than 20% higher than the current share price.


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