Dis-Chem Pharmacies Limited

JSE:DCP Stock Report

Market Cap: R31.1b

Dis-Chem Pharmacies Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: DCP (ZAR36.09) is trading above our estimate of fair value (ZAR31.31)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DCP. This is calculated by dividing DCP's market cap by their current earnings.
What is DCP's PE Ratio?
PE Ratio29.2x
EarningsR1.06b
Market CapR31.07b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DCP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.4x
CLS Clicks Group
31.5x12.1%R89.4b
SPP SPAR Group
17.3x17.9%R28.5b
BOX Boxer Retail
20.4xn/aR29.3b
SHP Shoprite Holdings
24.6x12.8%R161.5b
DCP Dis-Chem Pharmacies
29.2x19.3%R30.9b

Price-To-Earnings vs Peers: DCP is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DCP 29.2xIndustry Avg. 16.4xNo. of Companies53PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DCP is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the Global Consumer Retailing industry average (16.4x).

Price to Earnings Ratio vs Fair Ratio

What is DCP'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.

DCP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.2x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: DCP is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

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 DCP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR36.09
R39.46
+9.3%
10.4%R43.00R32.00n/a5
Dec ’25R37.90
R39.46
+4.1%
10.4%R43.00R32.00n/a5
Nov ’25R36.81
R38.66
+5.0%
13.2%R42.30R29.00n/a5
Oct ’25R37.88
R35.82
-5.4%
14.8%R42.00R29.00n/a5
Sep ’25R35.00
R35.82
+2.3%
14.8%R42.00R29.00n/a5
Aug ’25R35.63
R33.85
-5.0%
12.2%R42.00R29.00n/a6
Jul ’25R34.00
R33.18
-2.4%
8.8%R38.00R29.00n/a6
Jun ’25R31.28
R30.60
-2.2%
8.9%R33.00R26.00n/a5
May ’25R32.62
R30.60
-6.2%
8.9%R33.00R26.00n/a5
Apr ’25R32.52
R30.00
-7.7%
11.0%R33.00R26.00n/a5
Mar ’25R30.66
R30.00
-2.2%
11.0%R33.00R26.00n/a5
Feb ’25R30.00
R30.10
+0.3%
11.2%R33.50R26.00n/a5
Jan ’25R30.69
R29.72
-3.2%
10.9%R33.50R26.00n/a5
Dec ’24R28.25
R29.72
+5.2%
10.9%R33.50R26.00R37.905
Nov ’24R24.65
R25.08
+1.7%
15.0%R32.00R21.38R36.815
Oct ’24R23.72
R25.28
+6.6%
14.6%R32.00R21.38R37.885
Sep ’24R24.43
R25.28
+3.5%
14.6%R32.00R21.38R35.005
Aug ’24R25.80
R25.28
-2.0%
14.6%R32.00R21.38R35.635
Jul ’24R23.58
R25.28
+7.2%
14.6%R32.00R21.38R34.005
Jun ’24R22.70
R26.25
+15.6%
13.3%R32.00R23.00R31.284
May ’24R26.62
R28.88
+8.5%
14.0%R35.00R25.00R32.624
Apr ’24R25.94
R29.63
+14.2%
11.8%R35.00R25.50R32.524
Mar ’24R26.92
R31.70
+17.8%
14.0%R38.00R25.50R30.665
Feb ’24R30.25
R34.00
+12.4%
11.9%R39.00R28.00R30.005
Jan ’24R28.75
R34.00
+18.3%
11.9%R39.00R28.00R30.695
Dec ’23R30.25
R34.00
+12.4%
11.9%R39.00R28.00R28.255

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 18:23
End of Day Share Price 2024/12/30 00:00
Earnings2024/08/31
Annual Earnings2024/02/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Dis-Chem Pharmacies Limited is covered by 15 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Daniel DiasArqaam Capital Research Offshore S.A.L.
Michael de NobregaAvior Capital Markets
Paul Henri SteegersBofA Global Research