Sasol Valuation

Is SOLBE1 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 SOLBE1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOLBE1 (ZAR80) is trading above our estimate of fair value (ZAR65.64)

Significantly Below Fair Value: SOLBE1 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOLBE1?

Key metric: As SOLBE1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SOLBE1. This is calculated by dividing SOLBE1's market cap by their current revenue.
What is SOLBE1's PS Ratio?
PS Ratio	0.2x
Sales	R275.11b
Market Cap	R58.03b

SOLBE1 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/Revenue	0.5x
Enterprise Value/EBITDA	2.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SOLBE1's PS Ratio compare to its peers?

The above table shows the PS ratio for SOLBE1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1x
OMN Omnia Holdings	0.5x	3.8%	R11.6b
NPH Northam Platinum Holdings	1.4x	12.4%	R44.6b
HAR Harmony Gold Mining	1.7x	5.5%	R104.7b
SSW Sibanye Stillwater	0.5x	2.1%	R51.8b
SOLBE1 Sasol	0.2x	3.1%	R58.0b

Price-To-Sales vs Peers: SOLBE1 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 SOLBE1's PS Ratio compare vs other companies in the African Chemicals Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SOLBE1 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 SOLBE1'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.

SOLBE1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	1x

Price-To-Sales vs Fair Ratio: SOLBE1 is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (1x).

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.

Discover undervalued companies

Sephaku Holdings

R407.9m

Operates as a construction materials company in South Africa.

SEP

R1.76

-7.4%

83.3%

Merafe Resources

R3.6b

Engages in the mining and beneficiation of chrome ore into ferrochrome.

MRF

R1.46

-2.0%

20.7%

Afrimat

R9.8b

Operates as a mining and materials company primarily in the southern African region.

AFT

R64.52

-0.2%

14.3%