Libstar Holdings Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: LBR (ZAR3.6) is trading below our estimate of fair value (ZAR14.04)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LBR 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/Revenue0.3x
Enterprise Value/EBITDA4.4x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LBR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.1x
SHG Sea Harvest Group
8.4xn/aR2.4b
RFG RFG Holdings
7.3x9.1%R3.5b
BRT Brimstone Investment
4.2xn/aR1.2b
OCE Oceana Group
8.6x9.0%R8.4b
LBR Libstar Holdings
9.5x12.8%R2.1b

Price-To-Earnings vs Peers: LBR is expensive based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LBR is good value based on its Price-To-Earnings Ratio (9.5x) compared to the African Food industry average (9.8x).


Price to Earnings Ratio vs Fair Ratio

What is LBR'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.

LBR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: LBR is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).


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 LBR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR3.60
R3.74
+4.0%
12.4%R4.30R2.97n/a5
Mar ’25R3.50
R3.69
+5.5%
12.2%R4.30R2.97n/a5
Feb ’25R3.30
R3.69
+11.9%
12.2%R4.30R2.97n/a5
Jan ’25R3.50
R4.09
+17.0%
25.5%R6.00R2.97n/a5
Dec ’24R3.05
R4.09
+34.2%
25.5%R6.00R2.97n/a5
Nov ’24R3.05
R4.09
+34.2%
25.5%R6.00R2.97n/a5
Oct ’24R3.50
R4.09
+17.0%
25.5%R6.00R2.97n/a5
Sep ’24R3.90
R5.25
+34.7%
15.1%R6.00R3.76n/a5
Aug ’24R3.92
R4.87
+24.2%
16.8%R5.70R3.76n/a3
Jul ’24R3.90
R4.87
+24.9%
16.8%R5.70R3.76n/a3
Jun ’24R3.90
R4.87
+24.9%
16.8%R5.70R3.76n/a3
May ’24R4.88
R5.79
+18.7%
9.8%R6.53R5.15n/a3
Apr ’24R5.00
R6.43
+28.5%
15.6%R7.60R5.15n/a3
Mar ’24R5.97
R6.72
+12.6%
7.7%R7.60R6.25R3.504
Feb ’24R6.28
R6.72
+7.0%
7.7%R7.60R6.25R3.304
Jan ’24R5.80
R6.72
+15.9%
7.7%R7.60R6.25R3.504
Dec ’23R5.81
R6.72
+15.7%
7.7%R7.60R6.25R3.054
Nov ’23R6.00
R6.72
+12.0%
7.7%R7.60R6.25R3.054
Oct ’23R6.13
R6.74
+9.9%
7.6%R7.60R6.25R3.504
Sep ’23R5.75
R6.55
+13.9%
5.5%R7.00R6.00R3.904
Aug ’23R5.30
R6.55
+23.6%
5.5%R7.00R6.00R3.924
Jul ’23R5.45
R6.55
+20.2%
5.5%R7.00R6.00R3.904
Jun ’23R5.40
R6.72
+24.4%
6.9%R7.40R6.00R3.905
May ’23R5.62
R6.72
+19.6%
6.9%R7.40R6.00R4.885
Apr ’23R6.21
R6.80
+9.5%
7.0%R7.40R6.00R5.005
Mar ’23R6.51
R7.07
+8.6%
13.9%R8.90R6.12R5.975

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


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