Pepkor Holdings Limited

JSE:PPH Stock Report

Market Cap: R82.8b

Pepkor Holdings Valuation

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

Below Fair Value: PPH (ZAR22.59) is trading above our estimate of fair value (ZAR21.91)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PPH. This is calculated by dividing PPH's market cap by their current revenue.
What is PPH's PS Ratio?
PS Ratio0.9x
SalesR91.15b
Market CapR82.84b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
MRP Mr Price Group
1.8x6.8%R67.0b
TFG Foschini Group
0.9x7.1%R50.4b
TRU Truworths International
1.8x6.5%R37.9b
WHL Woolworths Holdings
0.8x6.4%R61.4b
PPH Pepkor Holdings
0.9x5.1%R82.8b

Price-To-Sales vs Peers: PPH is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does PPH's PS Ratio compare vs other companies in the African Specialty Retail Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
PPH 0.9xIndustry Avg. 0.6xNo. of Companies5PS00.40.81.21.62+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PPH is expensive based on its Price-To-Sales Ratio (0.9x) compared to the African Specialty Retail industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is PPH'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.

PPH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: PPH is good value based on its Price-To-Sales Ratio (0.9x) 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?

The above table shows the analyst PPH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR22.59
R21.74
-3.8%
4.6%R23.00R20.00n/a5
Nov ’25R22.97
R21.74
-5.4%
4.6%R23.00R20.00n/a5
Oct ’25R24.13
R20.94
-13.2%
6.0%R22.20R19.00n/a5
Sep ’25R21.90
R20.94
-4.4%
6.0%R22.20R19.00n/a5
Aug ’25R20.40
R20.91
+2.5%
10.6%R25.00R19.00n/a5
Jul ’25R19.56
R20.49
+4.8%
11.1%R25.00R19.00n/a5
Jun ’25R16.98
R20.33
+19.7%
13.5%R25.00R18.00n/a4
May ’25R17.86
R20.75
+16.2%
12.9%R25.00R18.00n/a4
Apr ’25R18.87
R20.20
+7.0%
9.2%R22.80R18.00n/a4
Mar ’25R18.73
R19.50
+4.1%
5.7%R21.00R18.00n/a4
Feb ’25R19.34
R21.54
+11.4%
21.5%R30.70R18.00n/a5
Jan ’25R19.63
R21.34
+8.7%
22.1%R30.70R18.00n/a5
Dec ’24R18.65
R21.34
+14.4%
22.1%R30.70R18.00n/a5
Nov ’24R17.30
R20.19
+16.7%
26.7%R30.70R15.35R22.975
Oct ’24R17.25
R20.29
+17.6%
22.1%R28.60R15.35R24.135
Sep ’24R16.70
R20.01
+19.8%
24.0%R28.60R13.97R21.905
Aug ’24R16.88
R20.01
+18.6%
24.0%R28.60R13.97R20.405
Jul ’24R16.50
R19.97
+21.1%
24.1%R28.60R13.97R19.565
Jun ’24R14.70
R19.97
+35.9%
24.1%R28.60R13.97R16.985
May ’24R16.95
R22.14
+30.6%
20.6%R30.80R17.90R17.865
Apr ’24R17.24
R22.94
+33.1%
18.7%R30.80R17.90R18.875
Mar ’24R18.65
R24.76
+32.8%
13.6%R30.80R22.00R18.735
Feb ’24R20.25
R25.80
+27.4%
13.5%R32.00R22.00R19.345
Jan ’24R20.00
R26.16
+30.8%
12.9%R32.00R22.00R19.635
Dec ’23R21.40
R26.16
+22.2%
12.9%R32.00R22.00R18.655
Nov ’23R22.69
R25.93
+14.3%
10.3%R29.50R22.00R17.304

Analyst Forecast: Target price is lower than the current share price.

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