Surge Components Valuation

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

SPRS ($2.31) is trading below our estimate of [[fair value]] ($5.64)

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

Below Fair Value: SPRS ($2.31) is trading below our estimate of fair value ($5.64)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SPRS. This is calculated by dividing SPRS's market cap by their current earnings.
What is SPRS's PE Ratio?
PE Ratio	27.1x
Earnings	US$484.70k
Market Cap	US$13.16m

SPRS 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	0.08x
Enterprise Value/EBITDA	3.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPRS 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	29x
PGNT Paragon Technologies	60.1x	n/a	US$13.5m
TAIT Taitron Components	11.5x	n/a	US$15.4m
EACO EACO	11.4x	n/a	US$184.2m
ELSE Electro-Sensors	32.9x	n/a	US$14.4m
SPRS Surge Components	27.1x	n/a	US$13.2m

Price-To-Earnings vs Peers: SPRS is good value based on its Price-To-Earnings Ratio (27.1x) compared to the peer average (29x).

Price to Earnings Ratio vs Industry

How does SPRS's PE Ratio compare vs other companies in the US Electronic Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
SHMD SCHMID Group	2.8x	n/a	US$109.16m
SGE Strong Global Entertainment	3.8x	n/a	US$12.27m
SPEC Spectaire Holdings	0.04x	n/a	US$1.02m
SMX SMX (Security Matters)	0.5x	n/a	US$753.74k

No more companies available in this PE range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SPRS is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the US Electronic industry average (24x).

Price to Earnings Ratio vs Fair Ratio

What is SPRS'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.

SPRS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.1x
Fair PE Ratio	n/a

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