Burstone Group Limited

JSE:BTN Stock Report

Market Cap: R8.0b

Burstone Group Valuation

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

Below Fair Value: BTN (ZAR9.95) is trading above our estimate of fair value (ZAR2.06)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for BTN. This is calculated by dividing BTN's market cap by their current revenue.
What is BTN's PS Ratio?
PS Ratio3.8x
SalesR2.07b
Market CapR7.97b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for BTN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.5x
SAC SA Real Estate
2.6x-2.6%R7.2b
ATT Attacq
3.6xn/aR9.2b
EMI Emira Property Fund
2.8x-8.0%R5.7b
FTA Fairvest
13x-15.1%R8.0b
BTN Burstone Group
3.8x-1.4%R8.0b

Price-To-Sales vs Peers: BTN is good value based on its Price-To-Sales Ratio (3.8x) compared to the peer average (5.5x).

Price to Sales Ratio vs Industry

How does BTN's PS Ratio compare vs other companies in the African REITs Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
BTN 3.8xIndustry Avg. 6.3xNo. of Companies5PS03.67.210.814.418+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BTN is good value based on its Price-To-Sales Ratio (3.8x) compared to the Global REITs industry average (6.3x).

Price to Sales Ratio vs Fair Ratio

What is BTN'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.

BTN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.8x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: BTN is expensive based on its Price-To-Sales Ratio (3.8x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).

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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