SA Corporate Real Estate Limited

JSE:SAC Stock Report

Market Cap: R7.3b

SA Real Estate Valuation

Is SAC 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SAC (ZAR2.92) is trading above our estimate of fair value (ZAR2.56)

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

Key Valuation Metric

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

Key metric: As SAC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SAC. This is calculated by dividing SAC's market cap by their current earnings.
What is SAC's PE Ratio?
PE Ratio6.1x
EarningsR1.20b
Market CapR7.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SAC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.5x
EMI Emira Property Fund
10.8xn/aR5.6b
ATT Attacq
10xn/aR9.4b
FTA Fairvest
37.7xn/aR8.0b
HET Heriot REIT
7.7xn/aR5.1b
SAC SA Real Estate
6.1xn/aR7.3b

Price-To-Earnings vs Peers: SAC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (12.7x).

Price to Earnings Ratio vs Industry

How does SAC's PE Ratio compare vs other companies in the Global REITs Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SAC 6.1xIndustry Avg. 16.1xNo. of Companies20PE01020304050+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SAC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Global REITs industry average (16.1x).

Price to Earnings Ratio vs Fair Ratio

What is SAC'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.

SAC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SAC's Price-To-Earnings Fair Ratio for valuation analysis.

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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