Zepp Health Valuation

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

ZEPP ($2.5) is trading below our estimate of [[fair value]] ($3.28)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: ZEPP ($2.5) is trading below our estimate of fair value ($3.28)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ZEPP. This is calculated by dividing ZEPP's market cap by their current revenue.
What is ZEPP's PS Ratio?
PS Ratio	0.2x
Sales	US$208.95m
Market Cap	US$39.44m

ZEPP 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	0.2x
Enterprise Value/EBITDA	-1.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ZEPP 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	2.4x
MSAI MultiSensor AI Holdings	5.2x	78.3%	US$39.3m
SNT Senstar Technologies	2x	n/a	US$59.0m
LPTH LightPath Technologies	1.9x	13.9%	US$59.5m
LUNA Luna Innovations	0.5x	13.3%	US$56.6m
ZEPP Zepp Health	0.2x	11.8%	US$39.4m

Price-To-Sales vs Peers: ZEPP is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

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

32 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	2.0x	7.3%
ZEPP Zepp Health	0.2x	11.8%	US$39.44m
SNX TD SYNNEX	0.2x	5.3%	US$9.87b
ARW Arrow Electronics	0.2x	2.7%	US$6.00b

32 Companies		Estimated Growth	Market Cap
Industry Avg.	2.0x	18.2%
ZEPP Zepp Health	0.2x	111.0%	US$39.44m

No more companies

Price-To-Sales vs Industry: ZEPP is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Electronic industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is ZEPP'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.

ZEPP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	0.7x

Price-To-Sales vs Fair Ratio: ZEPP is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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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