RF Industries Valuation

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

RFIL ($4.07) is trading below our estimate of [[fair value]] ($4.14)

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

Below Fair Value: RFIL ($4.07) is trading below our estimate of fair value ($4.14)

Significantly Below Fair Value: RFIL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RFIL. This is calculated by dividing RFIL's market cap by their current revenue.
What is RFIL's PS Ratio?
PS Ratio	0.7x
Sales	US$62.28m
Market Cap	US$41.03m

RFIL 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	1.1x
Enterprise Value/EBITDA	-177.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RFIL 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	1.1x
DSWL Deswell Industries	0.6x	n/a	US$41.4m
TRSG Tungray Technologies	2.6x	n/a	US$37.3m
OPTX Syntec Optics Holdings	1.2x	n/a	US$33.7m
KTCC Key Tronic	0.1x	n/a	US$61.1m
RFIL RF Industries	0.7x	8.8%	US$41.0m

Price-To-Sales vs Peers: RFIL is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does RFIL's PS Ratio compare vs other companies in the US Electronic Industry?

34 Companies	Price / Sales	Estimated Growth	Market Cap
SNX TD SYNNEX	0.2x	5.3%	US$9.76b
ARW Arrow Electronics	0.2x	2.7%	US$5.98b
INGM Ingram Micro Holding	0.1x	3.5%	US$5.35b
AVT Avnet	0.2x	3.7%	US$4.54b

34 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: RFIL is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Electronic industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is RFIL'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.

RFIL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: RFIL is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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

US$35.5b

Provides personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services worldwide.

HPQ

US$36.87

0.2%

28.6%

Avnet

US$4.5b

Distributes electronic component technology.

AVT

US$52.26

-1.5%

10.5%

Diebold Nixdorf

US$1.6b

Engages in the automating, digitizing, and transforming the way people bank and shop worldwide.

DBD

US$41.97

5.8%

72.7%