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Relativity Acquisition Valuation

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

RACY ($12.28) is trading below our estimate of [[fair value]] ($15.81)

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

Below Fair Value: RACY ($12.28) is trading below our estimate of fair value ($15.81)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RACY. This is calculated by dividing RACY's market cap by their current earnings.
What is RACY's PE Ratio?
PE Ratio	48.1x
Earnings	US$4.75m
Market Cap	US$228.68m

RACY 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RACY 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	36.3x
BOAC Bluescape Opportunities Acquisition	26x	n/a	US$226.5m
CNTQ Chardan NexTech Acquisition 2	87.4x	n/a	US$221.4m
ICNC Iconic Sports Acquisition	22.6x	n/a	US$237.8m
JGGC Jaguar Global Growth Corporation I	9.4x	n/a	US$217.4m
RACY Relativity Acquisition	48.1x	n/a	US$228.7m

Price-To-Earnings vs Peers: RACY is good value based on its Price-To-Earnings Ratio (48.1x) compared to the peer average (122.7x).

Price to Earnings Ratio vs Industry

How does RACY's PE Ratio compare vs other companies in the US Capital Markets Industry?

22 Companies	Price / Earnings	Estimated Growth	Market Cap
ADX Adams Diversified Equity Fund	4x	n/a	US$2.51b
CET Central Securities	4.8x	n/a	US$1.39b
GAM General American Investors Company	4.5x	n/a	US$1.27b
MUDS Mudrick Capital Acquisition Corporation II	3.4x	n/a	US$401.64m

22 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RACY is expensive based on its Price-To-Earnings Ratio (48.1x) compared to the US Capital Markets industry average (27.1x).

Price to Earnings Ratio vs Fair Ratio

What is RACY'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.

RACY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	48.1x
Fair PE Ratio	n/a

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