Transaction Capital Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: TCP (ZAR2.67) is trading below our estimate of fair value (ZAR3.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TCP. This is calculated by dividing TCP's market cap by their current revenue.
What is TCP's PS Ratio?
PS Ratio	0.1x
Sales	R21.12b
Market Cap	R2.09b

TCP 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TCP 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
NVS Novus Holdings	0.6x	n/a	R2.4b
ADR Adcorp Holdings	0.04x	2.7%	R505.6m
WKF Workforce Holdings	0.07x	n/a	R329.4m
4056 Neural Group	3.7x	16.2%	JP¥13.0b
TCP Transaction Capital	0.1x	n/a	R2.1b

Price-To-Sales vs Peers: TCP is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does TCP's PS Ratio compare vs other companies in the Global Professional Services Industry?

98 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.2x	6.5%
TCP Transaction Capital	0.1x	n/a	US$115.52m

98 Companies		Estimated Growth	Market Cap
Industry Avg.	1.2x	13.3%
TCP Transaction Capital	0.1x	n/a	US$115.52m

No more companies

Price-To-Sales vs Industry: TCP is good value based on its Price-To-Sales Ratio (0.1x) compared to the Global Professional Services industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is TCP'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.

TCP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TCP's Price-To-Sales 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.