Bid Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: BID (ZAR464.22) is trading above our estimate of fair value (ZAR266.53)

Significantly Below Fair Value: BID is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BID 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/Revenue0.8x
Enterprise Value/EBITDA13x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BID vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
SPP SPAR Group
42.4x41.0%R17.0b
SHP Shoprite Holdings
20.8x12.5%R134.6b
CLS Clicks Group
27.9x11.1%R70.9b
DCP Dis-Chem Pharmacies
31x20.6%R27.8b
BID Bid
20.9x10.5%R155.7b

Price-To-Earnings vs Peers: BID is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (30.5x).


Price to Earnings Ratio vs Industry

How does BID's PE Ratio compare vs other companies in the Global Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BID is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the Global Consumer Retailing industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is BID'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.

BID PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio22.5x

Price-To-Earnings vs Fair Ratio: BID is good value based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BID forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR461.81
R488.00
+5.7%
10.2%R560.00R408.00n/a7
Mar ’25R444.60
R482.00
+8.4%
11.0%R560.00R408.00n/a7
Feb ’25R474.13
R462.83
-2.4%
7.9%R515.00R415.00n/a6
Jan ’25R426.65
R460.33
+7.9%
8.4%R515.00R415.00n/a6
Dec ’24R408.50
R460.33
+12.7%
8.4%R515.00R415.00n/a6
Nov ’24R401.00
R454.17
+13.3%
8.7%R515.00R409.00n/a6
Oct ’24R422.25
R448.83
+6.3%
10.8%R515.00R374.00n/a6
Sep ’24R427.55
R446.33
+4.4%
10.2%R500.00R374.00n/a6
Aug ’24R429.41
R457.40
+6.5%
10.1%R500.00R374.00n/a5
Jul ’24R413.29
R457.40
+10.7%
10.1%R500.00R374.00n/a5
Jun ’24R425.44
R444.40
+4.5%
8.4%R485.00R374.00n/a5
May ’24R416.30
R426.40
+2.4%
11.7%R485.00R360.00n/a5
Apr ’24R398.50
R422.40
+6.0%
11.5%R485.00R360.00n/a5
Mar ’24R403.66
R422.40
+4.6%
11.5%R485.00R360.00R444.605
Feb ’24R382.04
R393.40
+3.0%
7.7%R430.00R357.00R474.135
Jan ’24R329.85
R386.40
+17.1%
6.3%R420.00R357.00R426.655
Dec ’23R333.72
R383.00
+14.8%
6.8%R420.00R357.00R408.504
Nov ’23R300.50
R378.00
+25.8%
6.7%R420.00R357.00R401.004
Oct ’23R278.82
R378.00
+35.6%
6.7%R420.00R357.00R422.254
Sep ’23R327.35
R385.00
+17.6%
6.6%R420.00R360.00R427.553
Aug ’23R308.34
R376.00
+21.9%
5.5%R405.00R360.00R429.413
Jul ’23R306.26
R376.00
+22.8%
5.5%R405.00R360.00R413.293
Jun ’23R331.66
R377.50
+13.8%
4.8%R405.00R360.00R425.444
May ’23R330.50
R381.75
+15.5%
4.2%R405.00R360.00R416.304
Apr ’23R316.76
R381.75
+20.5%
4.2%R405.00R360.00R398.504
Mar ’23R316.20
R382.40
+20.9%
3.7%R405.00R360.00R403.665

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.