Master Drilling Group Limited

JSE:MDI Stock Report

Market Cap: R2.0b

Master Drilling Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: MDI (ZAR13.35) is trading below our estimate of fair value (ZAR32.44)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MDI. This is calculated by dividing MDI's market cap by their current earnings.
What is MDI's PE Ratio?
PE Ratio11.9x
EarningsUS$9.29m
Market CapUS$110.29m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.3x
ARI African Rainbow Minerals
10x10.5%R31.4b
MRF Merafe Resources
2.5xn/aR3.6b
HLM Hulamin
5xn/aR1.2b
THA Tharisa
3.7x-1.6%R4.6b
MDI Master Drilling Group
11.9xn/aR2.0b

Price-To-Earnings vs Peers: MDI is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (5.3x).

Price to Earnings Ratio vs Industry

How does MDI's PE Ratio compare vs other companies in the African Metals and Mining Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MDI 11.9xIndustry Avg. 11.7xNo. of Companies5PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MDI is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the African Metals and Mining industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is MDI'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.

MDI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MDI'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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