Capital Appreciation Limited

JSE:CTA Stock Report

Market Cap: R2.3b

Capital Appreciation Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: Insufficient data to calculate CTA's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CTA's fair value for valuation analysis.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CTA. This is calculated by dividing CTA's market cap by their current earnings.
What is CTA's PE Ratio?
PE Ratio13.3x
EarningsR170.75m
Market CapR2.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28x
ACT AfroCentric Investment
29xn/aR1.6b
DNB Deneb Investments
11.1xn/aR1.1b
PPE Purple Group
61xn/aR1.5b
SYG Sygnia
10.8xn/aR3.4b
CTA Capital Appreciation
13.3xn/aR2.3b

Price-To-Earnings vs Peers: CTA is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (28x).


Price to Earnings Ratio vs Industry

How does CTA's PE Ratio compare vs other companies in the African Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CTA 13.3xIndustry Avg. 8.6xNo. of Companies8PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CTA is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the African Diversified Financial industry average (8.6x).


Price to Earnings Ratio vs Fair Ratio

What is CTA'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.

CTA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CTA's Price-To-Earnings Fair Ratio for valuation analysis.


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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