Pepkor Holdings Limited

JSE:PPH Stock Report

Market Cap: R107.9b

Pepkor Holdings Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PPH (ZAR29.32) is trading below our estimate of fair value (ZAR34.79)

Significantly Below Fair Value: PPH is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PPH. This is calculated by dividing PPH's market cap by their current earnings.
What is PPH's PE Ratio?
PE Ratio46.3x
EarningsR2.33b
Market CapR107.88b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.1x
MRP Mr Price Group
22x13.7%R74.1b
TFG Foschini Group
18.5x15.7%R55.1b
TRU Truworths International
9.9x3.4%R38.3b
WHL Woolworths Holdings
21.9x15.3%R56.9b
PPH Pepkor Holdings
46.3x31.0%R107.9b

Price-To-Earnings vs Peers: PPH is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (18.1x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PPH 46.3xIndustry Avg. 10.9xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PPH is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the African Specialty Retail industry average (10.9x).

Price to Earnings Ratio vs Fair Ratio

What is PPH'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.

PPH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.3x
Fair PE Ratio21.6x

Price-To-Earnings vs Fair Ratio: PPH is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).

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
CurrentR29.32
R26.50
-9.6%
15.6%R31.42R21.40n/a5
Dec ’25R26.73
R22.54
-15.7%
10.5%R27.00R20.00n/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%R30.70R18.00R26.735
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 04:50
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Pepkor Holdings Limited is covered by 15 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sa'ad ChothiaArqaam Capital Research Offshore S.A.L.
Michael JacksArqaam Capital Research Offshore S.A.L.
Atiyyah VawdaAvior Capital Markets