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 (ZAR8.83) is trading above our estimate of fair value (ZAR7.93)

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?

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

The above table shows the Price to Earnings ratio for SSU. This is calculated by dividing SSU's market cap by their current earnings.
What is SSU's PE Ratio?
PE Ratio	13.8x
Earnings	R856.00m
Market Cap	R11.90b

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/Revenue	2.4x
Enterprise Value/EBITDA	8.9x
PEG Ratio	0.7x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.7x
CLH City Lodge Hotels	14.5x	n/a	R2.7b
TSG Tsogo Sun	7.9x	10.3%	R12.2b
SUI Sun International	10.8x	20.3%	R10.7b
FBR Famous Brands	13.7x	n/a	R6.4b
SSU Southern Sun	13.8x	18.5%	R11.9b

Price-To-Earnings vs Peers: SSU is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

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Price-To-Earnings vs Industry: SSU is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the African Hospitality industry average (10.3x).

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 Ratio	13.8x
Fair PE Ratio	12.3x

Price-To-Earnings vs Fair Ratio: SSU is expensive based on its Price-To-Earnings Ratio (13.8x) 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.