Grupo Simec. de Valuation

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

SIM ($25.77) is trading above our estimate of [[fair value]] ($7.02)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: SIM ($25.77) is trading above our estimate of fair value ($7.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SIM. This is calculated by dividing SIM's market cap by their current earnings.
What is SIM's PE Ratio?
PE Ratio	9x
Earnings	Mex$9.05b
Market Cap	Mex$81.57b

SIM 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	1.5x
Enterprise Value/EBITDA	8.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SIM 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	12.6x
ARCH Arch Resources	17.6x	43.3%	US$3.2b
HCC Warrior Met Coal	9.5x	-3.8%	US$3.7b
AMR Alpha Metallurgical Resources	8.8x	6.4%	US$3.2b
CMC Commercial Metals	14.6x	6.0%	US$7.1b
SIM Grupo Simec. de	9x	n/a	US$4.0b

Price-To-Earnings vs Peers: SIM is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (12.7x).

Price to Earnings Ratio vs Industry

How does SIM's PE Ratio compare vs other companies in the US Metals and Mining Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap
VITF.F Victoria Gold	2.1x	n/a	US$23.43m
BMXI Brookmount Explorations	0.7x	n/a	US$6.54m
RMRI Rocky Mountain Industrials	0.9x	n/a	US$1.76m
ZCRM.F Zincore Metals	0.5x	n/a	US$852.33k

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SIM is good value based on its Price-To-Earnings Ratio (9x) compared to the US Metals and Mining industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is SIM'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.

SIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9x
Fair PE Ratio	n/a

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