Sasol Valuation

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

SSL ($5.14) is trading above our estimate of [[fair value]] ($4.98)

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

Below Fair Value: SSL ($5.14) is trading above our estimate of fair value ($4.98)

Significantly Below Fair Value: SSL is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SSL. This is calculated by dividing SSL's market cap by their current revenue.
What is SSL's PS Ratio?
PS Ratio	0.2x
Sales	R275.11b
Market Cap	R58.03b

SSL 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	0.5x
Enterprise Value/EBITDA	2.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SSL 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	1x
CC Chemours	0.6x	4.8%	US$3.3b
HUN Huntsman	0.6x	5.5%	US$3.4b
LXU LSB Industries	1.2x	5.7%	US$625.3m
IOSP Innospec	1.6x	3.3%	US$2.9b
SSL Sasol	0.2x	3.1%	US$58.0b

Price-To-Sales vs Peers: SSL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does SSL's PS Ratio compare vs other companies in the US Chemicals Industry?

12 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.5x	4.6%
SSL Sasol	0.2x	3.1%	US$3.19b
TSE Trinseo	0.04x	4.1%	US$157.18m
ALTO Alto Ingredients	0.1x	3.1%	US$108.07m

12 Companies		Estimated Growth	Market Cap
Industry Avg.	1.5x	17.0%
SSL Sasol	0.2x	71.1%	US$3.19b

No more companies

Price-To-Sales vs Industry: SSL is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Chemicals industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is SSL'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.

SSL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	2.2x

Price-To-Sales vs Fair Ratio: SSL is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).

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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