Sasol Limited

JSE:SOL Stock Report

Market Cap: R58.0b

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

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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 (ZAR91.28) is trading above our estimate of fair value (ZAR73.3)

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

Key Valuation Metric

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

Key metric: As SOL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SOL. This is calculated by dividing SOL's market cap by their current revenue.
What is SOL's PS Ratio?
PS Ratio0.2x
SalesR275.11b
Market CapR58.03b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
OMN Omnia Holdings
0.5x3.8%R11.6b
NPH Northam Platinum Holdings
1.4x12.4%R44.6b
HAR Harmony Gold Mining
1.7x5.5%R104.7b
SSW Sibanye Stillwater
0.5x2.1%R51.8b
SOL Sasol
0.2x3.1%R58.0b

Price-To-Sales vs Peers: SOL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

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

1 CompanyPrice / SalesEstimated GrowthMarket Cap
SOL 0.2xIndustry Avg. 1.3xNo. of Companies5PS00.81.62.43.24+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SOL is good value based on its Price-To-Sales Ratio (0.2x) compared to the African Chemicals industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

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

SOL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: SOL is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 SOL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR91.28
R180.11
+97.3%
20.0%R230.00R115.00n/a9
Nov ’25R102.33
R185.13
+80.9%
20.6%R240.00R115.00n/a8
Oct ’25R116.94
R194.38
+66.2%
18.4%R240.00R142.00n/a8
Sep ’25R137.58
R198.38
+44.2%
19.0%R260.00R142.00n/a8
Aug ’25R147.23
R201.38
+36.8%
19.9%R260.00R142.00n/a8
Jul ’25R139.09
R211.88
+52.3%
22.6%R281.00R142.00n/a8
Jun ’25R124.10
R212.38
+71.1%
22.3%R281.00R142.00n/a8
May ’25R133.26
R212.38
+59.4%
22.3%R281.00R142.00n/a8
Apr ’25R146.39
R217.38
+48.5%
21.4%R281.00R142.00n/a8
Mar ’25R146.38
R229.00
+56.4%
22.8%R281.00R142.00n/a8
Feb ’25R162.88
R266.67
+63.7%
15.5%R346.00R184.00n/a9
Jan ’25R185.29
R278.00
+50.0%
11.2%R346.00R245.00n/a9
Dec ’24R205.44
R286.33
+39.4%
12.1%R346.00R245.00n/a9
Nov ’24R235.18
R299.22
+27.2%
9.9%R346.00R248.00R102.339
Oct ’24R261.02
R300.33
+15.1%
9.9%R346.00R248.00R116.949
Sep ’24R245.11
R307.56
+25.5%
7.5%R346.00R265.00R137.589
Aug ’24R249.53
R315.11
+26.3%
11.2%R399.00R265.00R147.239
Jul ’24R233.26
R319.50
+37.0%
11.7%R399.00R265.00R139.098
Jun ’24R232.80
R330.25
+41.9%
10.6%R384.00R265.00R124.108
May ’24R237.17
R343.00
+44.6%
12.8%R438.00R275.00R133.268
Apr ’24R240.00
R343.00
+42.9%
12.8%R438.00R275.00R146.398
Mar ’24R271.34
R368.33
+35.7%
20.7%R550.00R275.00R146.389
Feb ’24R315.58
R386.56
+22.5%
17.9%R550.00R290.00R162.889
Jan ’24R269.43
R390.00
+44.8%
21.6%R600.00R290.00R185.299
Dec ’23R285.53
R398.33
+39.5%
20.4%R600.00R290.00R205.449
Nov ’23R285.00
R401.13
+40.7%
20.3%R600.00R300.00R235.188

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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