Truworths International Limited

JSE:TRU Stock Report

Market Cap: R38.6b

Truworths International Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TRU (ZAR103.62) is trading above our estimate of fair value (ZAR77.75)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TRU. This is calculated by dividing TRU's market cap by their current earnings.
What is TRU's PE Ratio?
PE Ratio9.9x
EarningsR3.89b
Market CapR38.57b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23x
TFG Foschini Group
18.9x13.7%R56.3b
MRP Mr Price Group
22.3x13.7%R75.0b
PPH Pepkor Holdings
42x43.3%R97.7b
MTH Motus Holdings
8.9x12.4%R21.6b
TRU Truworths International
9.9x3.4%R38.6b

Price-To-Earnings vs Peers: TRU is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (23x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TRU 9.9xIndustry Avg. 10.5xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRU is good value based on its Price-To-Earnings Ratio (9.9x) compared to the African Specialty Retail industry average (10.5x).

Price to Earnings Ratio vs Fair Ratio

What is TRU'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.

TRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: TRU is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).

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 TRU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR103.62
R106.05
+2.3%
6.9%R118.00R96.00n/a6
Nov ’25R112.21
R106.88
-4.7%
7.0%R120.00R96.00n/a6
Oct ’25R109.00
R100.76
-7.6%
16.4%R120.00R64.00n/a7
Sep ’25R97.39
R91.67
-5.9%
15.3%R108.00R64.00n/a6
Aug ’25R91.00
R87.17
-4.2%
13.2%R102.00R64.00n/a6
Jul ’25R96.79
R86.17
-11.0%
13.6%R102.00R64.00n/a6
Jun ’25R76.28
R84.50
+10.8%
11.8%R93.00R64.00n/a6
May ’25R75.49
R82.00
+8.6%
14.8%R93.00R64.00n/a6
Apr ’25R76.33
R82.00
+7.4%
14.8%R93.00R64.00n/a6
Mar ’25R77.57
R78.83
+1.6%
14.4%R92.00R64.00n/a6
Feb ’25R75.70
R75.86
+0.2%
15.9%R92.00R64.00n/a7
Jan ’25R74.35
R75.79
+1.9%
16.6%R92.00R64.00n/a7
Dec ’24R76.41
R75.79
-0.8%
16.6%R92.00R64.00R102.067
Nov ’24R76.00
R76.93
+1.2%
17.6%R94.00R63.00R112.217
Oct ’24R76.50
R77.93
+1.9%
16.3%R94.00R64.00R109.007
Sep ’24R74.22
R74.57
+0.5%
14.0%R91.00R63.00R97.397
Aug ’24R69.84
R73.00
+4.5%
16.1%R85.00R58.00R91.006
Jul ’24R56.60
R72.67
+28.4%
16.3%R85.00R58.00R96.796
Jun ’24R49.09
R72.67
+48.0%
16.3%R85.00R58.00R76.286
May ’24R54.38
R73.67
+35.5%
15.8%R85.00R58.00R75.496
Apr ’24R53.32
R73.67
+38.2%
15.8%R85.00R58.00R76.336
Mar ’24R60.54
R72.43
+19.6%
15.5%R85.00R58.00R77.577
Feb ’24R65.93
R67.50
+2.4%
12.7%R79.00R54.00R75.706
Jan ’24R55.00
R64.67
+17.6%
15.6%R79.00R47.00R74.356
Dec ’23R55.29
R64.67
+17.0%
15.6%R79.00R47.00R76.416

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

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