Central Securities Valuation

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

CET ($46.23) is trading below our estimate of [[fair value]] ($141.79)

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

Below Fair Value: CET ($46.23) is trading below our estimate of fair value ($141.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CET. This is calculated by dividing CET's market cap by their current earnings.
What is CET's PE Ratio?
PE Ratio	4.5x
Earnings	US$292.95m
Market Cap	US$1.32b

CET 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	56.4x
Enterprise Value/EBITDA	82.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CET 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	20.4x
VRTS Virtus Investment Partners	13.8x	n/a	US$1.6b
BSIG BrightSphere Investment Group	17.3x	n/a	US$1.1b
GCMG GCM Grosvenor	38.9x	26.9%	US$2.3b
DBRG DigitalBridge Group	11.6x	-23.4%	US$2.3b
CET Central Securities	4.5x	n/a	US$1.3b

Price-To-Earnings vs Peers: CET is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

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

22 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	23.7x	13.8%
CET Central Securities	4.5x	n/a	US$1.32b
ADX Adams Diversified Equity Fund	4x	n/a	US$2.52b
GAM General American Investors Company	4.1x	n/a	US$1.16b

22 Companies		Estimated Growth	Market Cap
Industry Avg.	23.7x	13.8%
CET Central Securities	4.5x	n/a	US$1.32b

No more companies

Price-To-Earnings vs Industry: CET is good value based on its Price-To-Earnings Ratio (4.5x) compared to the US Capital Markets industry average (23.6x).

Price to Earnings Ratio vs Fair Ratio

What is CET'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.

CET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.5x
Fair PE Ratio	n/a

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

Discover undervalued companies

Federal Home Loan Mortgage

US$10.4b

Operates in the secondary mortgage market in the United States.

FMCC

US$2.92

358.8%

ORIX

JP¥3.8t

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

JP¥106.82

-0.9%

17.5%

FinVolution Group

US$1.6b

Operates in the online consumer finance industry.

FINV

US$6.30

6.1%

38.8%