AVI Limited

JSE:AVI Stock Report

Market Cap: R36.8b

AVI Valuation

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

Below Fair Value: AVI (ZAR111.19) is trading below our estimate of fair value (ZAR111.95)

Significantly Below Fair Value: AVI is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AVI. This is calculated by dividing AVI's market cap by their current earnings.
What is AVI's PE Ratio?
PE Ratio16.3x
EarningsR2.26b
Market CapR36.80b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AVI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.3x
TBS Tiger Brands
13.4x5.9%R37.9b
PMR Premier Group
14.4x10.4%R15.3b
OCE Oceana Group
6.4xn/aR8.2b
RCL RCL Foods
6.9xn/aR8.1b
AVI AVI
16.3x7.9%R36.8b

Price-To-Earnings vs Peers: AVI is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (10.3x).

Price to Earnings Ratio vs Industry

How does AVI's PE Ratio compare vs other companies in the African Food Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AVI 16.3xIndustry Avg. 9.7xNo. of Companies12PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AVI is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the African Food industry average (9.8x).

Price to Earnings Ratio vs Fair Ratio

What is AVI'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.

AVI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: AVI is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).

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 AVI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR111.70
R120.73
+8.1%
4.1%R127.20R115.00n/a3
Nov ’25R110.00
R120.73
+9.8%
4.1%R127.20R115.00n/a3
Oct ’25R109.00
R111.00
+1.8%
8.1%R120.00R102.00n/a2
Sep ’25R101.74
R96.67
-5.0%
6.4%R102.00R88.00n/a3
Aug ’25R98.14
R96.00
-2.2%
7.5%R105.00R87.00n/a5
Jul ’25R97.06
R94.40
-2.7%
7.4%R105.00R87.00n/a5
Jun ’25R84.83
R93.20
+9.9%
6.9%R105.00R87.00n/a5
May ’25R86.90
R93.20
+7.2%
6.9%R105.00R87.00n/a5
Apr ’25R91.35
R93.20
+2.0%
6.9%R105.00R87.00n/a5
Mar ’25R89.34
R87.60
-1.9%
2.9%R92.00R85.00n/a5
Feb ’25R83.13
R87.60
+5.4%
2.9%R92.00R85.00n/a5
Jan ’25R82.07
R83.40
+1.6%
4.0%R88.00R78.00n/a5
Dec ’24R77.25
R83.40
+8.0%
4.0%R88.00R78.00n/a5
Nov ’24R71.19
R82.60
+16.0%
5.1%R88.00R76.00R110.005
Oct ’24R74.64
R79.39
+6.4%
10.3%R88.00R63.31R109.006
Sep ’24R73.46
R77.06
+4.9%
10.9%R88.00R63.31R101.745
Aug ’24R72.00
R74.33
+3.2%
9.6%R83.00R63.31R98.144
Jul ’24R68.09
R76.36
+12.1%
9.9%R84.50R63.31R97.065
Jun ’24R63.41
R76.36
+20.4%
9.9%R84.50R63.31R84.835
May ’24R68.16
R74.96
+10.0%
10.6%R84.50R63.31R86.905
Apr ’24R70.20
R74.96
+6.8%
10.6%R84.50R63.31R91.355
Mar ’24R77.39
R79.42
+2.6%
5.6%R84.50R72.00R89.346
Feb ’24R75.07
R79.42
+5.8%
5.6%R84.50R72.00R83.136
Jan ’24R75.21
R79.09
+5.2%
6.4%R84.50R70.00R82.076
Dec ’23R72.87
R79.09
+8.5%
6.4%R84.50R70.00R77.256
Nov ’23R74.42
R79.09
+6.3%
6.4%R84.50R70.00R71.196

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

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