SAB Zenzele Kabili Holdings (RF) Limited

JSE:SZK Stock Report

Market Cap: R1.4b

SAB Zenzele Kabili Holdings (RF) Valuation

Is SZK 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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SZK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SZK (ZAR34.01) is trading above our estimate of fair value (ZAR6.96)

Significantly Below Fair Value: SZK is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As SZK is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for SZK. This is calculated by dividing SZK's market cap by their current book value.
What is SZK's PB Ratio?
PB Ratio0.7x
BookR1.96b
Market CapR1.38b

Price to Book Ratio vs Peers

How does SZK's PB Ratio compare to its peers?

The above table shows the PB ratio for SZK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average0.6x
BRT Brimstone Investment
0.4xn/aR1.3b
QFH Quantum Foods Holdings
0.9xn/aR1.8b
LBR Libstar Holdings
0.5x22.5%R2.7b
SHG Sea Harvest Group
0.7xn/aR2.7b
SZK SAB Zenzele Kabili Holdings (RF)
0.7xn/aR1.4b

Price-To-Book vs Peers: SZK is expensive based on its Price-To-Book Ratio (0.7x) compared to the peer average (0.6x).


Price to Book Ratio vs Industry

How does SZK's PB Ratio compare vs other companies in the African Beverage Industry?

2 CompaniesPrice / BookEstimated GrowthMarket Cap
SZK 0.7xIndustry Avg. 2.1xNo. of Companies3PB0246810+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: SZK is good value based on its Price-To-Book Ratio (0.7x) compared to the Global Beverage industry average (2.1x).


Price to Book Ratio vs Fair Ratio

What is SZK's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SZK PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.7x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate SZK's Price-To-Book 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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