Foschini Group Valuation

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

TFGP (ZAR1.01) is trading above our estimate of [[fair value]] (ZAR0.38)

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

Below Fair Value: TFGP (ZAR1.01) is trading above our estimate of fair value (ZAR0.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TFGP. This is calculated by dividing TFGP's market cap by their current earnings.
What is TFGP's PE Ratio?
PE Ratio	16.9x
Earnings	R2.98b
Market Cap	R50.37b

TFGP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	10x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TFGP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.7x
TRU Truworths International	9.8x	2.9%	R37.9b
MRP Mr Price Group	20.4x	13.2%	R67.0b
MTH Motus Holdings	8.8x	12.4%	R21.4b
WHL Woolworths Holdings	23.7x	13.6%	R61.4b
TFGP Foschini Group	16.9x	13.7%	R50.4b

Price-To-Earnings vs Peers: TFGP is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (15.7x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TFGP is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the Global Specialty Retail industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is TFGP'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.

TFGP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.9x
Fair PE Ratio	12.3x

Price-To-Earnings vs Fair Ratio: TFGP is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).

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.

Discover undervalued companies

Naspers

R681.3b

Operates in the consumer internet industry in Africa, Asia, Europe, Latin America, North America, and internationally.

NPN

R4,137.78

0.8%

22.0%

Truworths International

R37.9b

An investment holding and management company, engages in the retail of fashion apparel and accessories.

TRU

R101.94

-2.0%

27.9%

Motus Holdings

R21.4b

Provides automotive mobility solutions in South Africa, the United Kingdom, Australia, and Asia.

MTH

R121.67

4.0%

19.0%