Santech Holdings Valuation

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

STEC ($1.04) is trading below our estimate of [[fair value]] ($12.43)

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

Below Fair Value: STEC ($1.04) is trading below our estimate of fair value ($12.43)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for STEC. This is calculated by dividing STEC's market cap by their current revenue.
What is STEC's PS Ratio?
PS Ratio	0.1x
Sales	CN¥1.85b
Market Cap	CN¥217.08m

STEC 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	0.04x
Enterprise Value/EBITDA	-0.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does STEC's PS Ratio compare to its peers?

The above table shows the PS ratio for STEC 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	6.5x
XBOT.F Realbotix	21.8x	126.7%	US$19.7m
BCG Binah Capital Group	0.3x	n/a	US$45.3m
TETA.A Teton Advisors	2x	n/a	US$22.4m
MGLD Marygold Companies	1.8x	n/a	US$62.5m
STEC Santech Holdings	0.1x	n/a	US$30.0m

Price-To-Sales vs Peers: STEC is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (6.5x).

Price to Sales Ratio vs Industry

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

23 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	3.5x	5.9%
STEC Santech Holdings	0.1x	n/a	US$29.96m
SNEX StoneX Group	0.03x	n/a	US$3.27b
OPY Oppenheimer Holdings	0.5x	n/a	US$635.07m

23 Companies		Estimated Growth	Market Cap
Industry Avg.	3.5x	14.0%
STEC Santech Holdings	0.1x	n/a	US$29.96m

No more companies

Price-To-Sales vs Industry: STEC is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Capital Markets industry average (3.5x).

Price to Sales Ratio vs Fair Ratio

What is STEC'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.

STEC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

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

Discover undervalued companies

Investor

SEK 906.7b

A private equity firm specializing in mature, middle market, buyouts and growth capital investments.

IVSB.F

SEK 26.00

-3.9%

28.7%

FinVolution Group

US$1.6b

Operates in the online consumer finance industry.

FINV

US$6.29

8.1%

38.5%

ORIX

JP¥3.8t

Provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East.

JP¥107.82

-0.5%

18.6%