Southern Sun Valuation

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

Below Fair Value: SSU (ZAR8.25) is trading above our estimate of fair value (ZAR7.9)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SSU 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/Revenue2.2x
Enterprise Value/EBITDA8.3x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SSU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.6x
CLH City Lodge Hotels
14.4xn/aR2.7b
SUI Sun International
10.7x20.3%R10.8b
TSG Tsogo Sun
8.3x10.3%R12.9b
FBR Famous Brands
13.2xn/aR6.3b
SSU Southern Sun
12.9x18.5%R11.0b

Price-To-Earnings vs Peers: SSU is expensive based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (11.6x).


Price to Earnings Ratio vs Industry

How does SSU's PE Ratio compare vs other companies in the African Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SSU is expensive based on its Price-To-Earnings Ratio (12.9x) compared to the African Hospitality industry average (10.8x).


Price to Earnings Ratio vs Fair Ratio

What is SSU'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.

SSU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.9x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: SSU is expensive based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).


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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