Murray & Roberts Holdings Limited

JSE:MUR Stock Report

Market Cap: R447.9m

Murray & Roberts Holdings Valuation

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

Below Fair Value: MUR (ZAR1.1) is trading below our estimate of fair value (ZAR8.23)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for MUR. This is calculated by dividing MUR's market cap by their current revenue.
What is MUR's PS Ratio?
PS Ratio0.03x
SalesR13.45b
Market CapR447.85m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MUR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.3x
SSK Stefanutti Stocks Holdings
0.1xn/aR777.7m
AEG Aveng
0.04xn/aR1.5b
RBX Raubex Group
0.5x11.8%R9.5b
WBO Wilson Bayly Holmes-Ovcon
0.4x14.2%R11.2b
MUR Murray & Roberts Holdings
0.03x6.5%R447.9m

Price-To-Sales vs Peers: MUR is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does MUR's PS Ratio compare vs other companies in the African Construction Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.7x14.9%
MUR Murray & Roberts Holdings
 0.03x6.5%US$24.72m
MUR 0.0xIndustry Avg. 0.7xNo. of Companies6PS00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.7x16.8%
MUR Murray & Roberts Holdings
 0.03x96.5%US$24.72m
No more companies

Price-To-Sales vs Industry: MUR is good value based on its Price-To-Sales Ratio (0x) compared to the Global Construction industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is MUR'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.

MUR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.03x
Fair PS Ratio0.1x

Price-To-Sales vs Fair Ratio: MUR is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).

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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