We’ve recently updated our valuation analysis.

Sasol Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SOL 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/Revenue1x
Enterprise Value/EBITDA4.3x
PEG Ratio-6.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.4x
OMN Omnia Holdings
10.6x5.7%R11.4b
GFI Gold Fields
10.7x5.4%R167.0b
ANG AngloGold Ashanti
13.5x7.4%R129.4b
KIO Kumba Iron Ore
6.8x-11.1%R147.0b
SOL Sasol
4.8x-0.7%R185.6b

Price-To-Earnings vs Peers: SOL is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (10.4x).


Price to Earnings Ratio vs Industry

How does SOL's PE Ratio compare vs other companies in the African Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-1.5%
n/an/an/a

Price-To-Earnings vs Industry: SOL is good value based on its Price-To-Earnings Ratio (4.8x) compared to the African Chemicals industry average (7.8x)


Price to Earnings Ratio vs Fair Ratio

What is SOL'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.

SOL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ratio5.8x

Price-To-Earnings vs Fair Ratio: SOL is good value based on its Price-To-Earnings Ratio (4.8x) compared to the estimated Fair Price-To-Earnings Ratio (5.8x).


Share Price vs Fair Value

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

Below Fair Value: SOL (ZAR292.42) is trading above our estimate of fair value (ZAR281.41)

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


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 SOL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR292.42
R402.11
+37.5%
19.8%R600.00R290.00n/a9
Nov ’23R285.00
R401.13
+40.7%
20.3%R600.00R300.00n/a8
Oct ’23R285.74
R422.56
+47.9%
19.0%R600.00R300.00n/a9
Sep ’23R325.78
R432.00
+32.6%
18.8%R600.00R300.00n/a9
Aug ’23R340.35
R435.11
+27.8%
18.3%R600.00R300.00n/a9
Jul ’23R349.35
R437.67
+25.3%
18.2%R600.00R300.00n/a9
Jun ’23R405.83
R398.67
-1.8%
17.3%R450.00R220.00n/a9
May ’23R392.78
R385.56
-1.8%
19.3%R450.00R220.00n/a9
Apr ’23R359.81
R385.56
+7.2%
19.3%R450.00R220.00n/a9
Mar ’23R369.12
R348.56
-5.6%
19.2%R450.00R220.00n/a9
Feb ’23R352.66
R317.89
-9.9%
20.0%R450.00R220.00n/a9
Jan ’23R259.00
R293.60
+13.4%
13.0%R362.00R220.00n/a10
Dec ’22R275.48
R294.30
+6.8%
13.1%R362.00R220.00n/a10
Nov ’22R256.61
R284.70
+10.9%
16.0%R362.00R190.00R285.0010
Oct ’22R275.91
R273.30
-0.9%
13.6%R325.00R190.00R285.7410
Sep ’22R221.60
R272.20
+22.8%
13.9%R325.00R190.00R325.7810
Aug ’22R219.18
R271.10
+23.7%
16.0%R325.00R190.00R340.3510
Jul ’22R224.66
R271.10
+20.7%
16.0%R325.00R190.00R349.3510
Jun ’22R238.18
R262.40
+10.2%
20.7%R325.00R140.00R405.8310
May ’22R244.00
R252.00
+3.3%
21.2%R325.00R140.00R392.7810
Apr ’22R222.43
R237.50
+6.8%
20.5%R300.00R140.00R359.8110
Mar ’22R195.00
R216.60
+11.1%
21.3%R300.00R140.00R369.1210
Feb ’22R163.95
R182.90
+11.6%
25.1%R250.00R105.00R352.6610
Jan ’22R133.93
R161.40
+20.5%
17.0%R200.00R105.00R259.0010
Dec ’21R117.25
R158.00
+34.8%
15.9%R190.00R105.00R275.489
Nov ’21R84.03
R158.00
+88.0%
15.9%R190.00R105.00R256.619

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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