Primary Health Properties Plc

JSE:PHP Stock Report

Market Cap: R28.8b

Primary Health Properties Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: PHP (ZAR23) is trading above our estimate of fair value (ZAR12.87)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PHP. This is calculated by dividing PHP's market cap by their current revenue.
What is PHP's PS Ratio?
PS Ratio7.1x
SalesUK£177.80m
Market CapUK£1.26b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PHP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.6x
RDF Redefine Properties
2.9x-4.3%R30.5b
VKE Vukile Property Fund
4.9x1.8%R19.6b
GRT Growthpoint Properties
3.1x-16.8%R44.1b
HYP Hyprop Investments
3.7x5.4%R16.5b
PHP Primary Health Properties
7.2x-0.4%R1.3b

Price-To-Sales vs Peers: PHP is expensive based on its Price-To-Sales Ratio (7.2x) compared to the peer average (3.6x).

Price to Sales Ratio vs Industry

How does PHP's PS Ratio compare vs other companies in the Global Health Care REITs Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
PHP 7.1xIndustry Avg. 6.5xNo. of Companies6PS03.26.49.612.816+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PHP is expensive based on its Price-To-Sales Ratio (7.2x) compared to the Global Health Care REITs industry average (6.5x).

Price to Sales Ratio vs Fair Ratio

What is PHP'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.

PHP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.1x
Fair PS Ratio7.1x

Price-To-Sales vs Fair Ratio: PHP is expensive based on its Price-To-Sales Ratio (7.2x) compared to the estimated Fair Price-To-Sales Ratio (7.1x).

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 PHP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR23.00
R23.89
+3.9%
6.2%R25.63R21.55n/a9
Nov ’25R21.25
R23.96
+12.8%
8.7%R27.44R20.81n/a9
Oct ’25R23.40
R24.11
+3.0%
9.6%R27.79R20.61n/a9
Sep ’25R22.80
R24.49
+7.4%
9.5%R28.44R21.09n/a9
Aug ’25R22.08
R24.49
+10.9%
9.5%R28.44R21.09n/a9
Jul ’25R21.56
R23.95
+11.1%
9.6%R27.60R20.47n/a9
Jun ’25R22.07
R23.74
+7.6%
9.4%R27.87R20.67n/a9
May ’25R21.80
R24.30
+11.5%
10.6%R28.22R20.93n/a9
Apr ’25R23.10
R24.36
+5.4%
9.4%R28.59R21.21n/a9
Mar ’25R22.33
R25.00
+12.0%
9.2%R29.00R21.51n/a9
Feb ’25R22.75
R24.03
+5.6%
9.0%R27.46R21.16n/a9
Jan ’25R27.51
R24.03
-12.6%
9.0%R27.46R21.16n/a9
Dec ’24R24.74
R24.03
-2.9%
9.0%R27.46R21.16n/a9
Nov ’24R50.00
R24.03
-51.9%
9.0%R27.46R21.16R21.259
Oct ’24n/a
R25.30
0%
9.4%R28.78R22.17R23.408
Sep ’24n/a
R25.63
0%
9.9%R29.18R22.49R22.808
Aug ’24n/a
R25.90
0%
17.7%R37.00R21.47R22.088
Jul ’24n/a
R28.34
0%
17.8%R38.02R23.00R21.568
Jun ’24n/a
R29.88
0%
17.6%R39.47R23.88R22.078
May ’24n/a
R27.85
0%
16.2%R36.62R22.60R21.809
Apr ’24n/a
R27.74
0%
16.2%R36.47R22.51R23.109
Mar ’24n/a
R27.51
0%
16.7%R35.79R22.09R22.339
Feb ’24n/a
R28.35
0%
17.4%R35.14R22.36R22.759
Jan ’24n/a
R28.07
0%
18.6%R33.89R21.57R27.519
Dec ’23n/a
R29.43
0%
18.6%R35.53R22.61R24.749
Nov ’23n/a
R29.58
0%
13.8%R33.74R22.49R50.009

Analyst Forecast: Target price is less than 20% higher than the current share price.

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