Sun International Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: SUI (ZAR44.06) is trading below our estimate of fair value (ZAR59.74)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SUI. This is calculated by dividing SUI's market cap by their current earnings.
What is SUI's PE Ratio?
PE Ratio	10.8x
Earnings	R1.00b
Market Cap	R10.79b

SUI 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	1.3x
Enterprise Value/EBITDA	5x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SUI 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	35x
TSG Tsogo Sun	8x	10.3%	R12.2b
SSU Southern Sun	12.8x	19.1%	R12.0b
FBR Famous Brands	14.1x	n/a	R6.8b
COH Curro Holdings	105.1x	n/a	R7.7b
SUI Sun International	10.8x	20.3%	R10.8b

Price-To-Earnings vs Peers: SUI is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (35x).

Price to Earnings Ratio vs Industry

How does SUI'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

No more companies

Price-To-Earnings vs Industry: SUI is good value based on its Price-To-Earnings Ratio (10.8x) compared to the African Hospitality industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is SUI'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.

SUI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.8x
Fair PE Ratio	12.7x

Price-To-Earnings vs Fair Ratio: SUI is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (12.7x).

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.