We Buy Cars Holdings Valuation

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

WBC (ZAR39.6) is trading above our estimate of [[fair value]] (ZAR27.57)

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

Below Fair Value: WBC (ZAR39.6) is trading above our estimate of fair value (ZAR27.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WBC. This is calculated by dividing WBC's market cap by their current earnings.
What is WBC's PE Ratio?
PE Ratio	24.2x
Earnings	R682.51m
Market Cap	R16.52b

WBC 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	0.8x
Enterprise Value/EBITDA	15.2x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WBC 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	52.5x
MTH Motus Holdings	8.8x	12.4%	R21.4b
SPG Super Group	183x	52.0%	R8.0b
CMH Combined Motor Holdings	7x	6.9%	R2.4b
ITE Italtile	11.3x	n/a	R16.5b
WBC We Buy Cars Holdings	24.2x	24.8%	R16.5b

Price-To-Earnings vs Peers: WBC is good value based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (52.5x).

Price to Earnings Ratio vs Industry

How does WBC'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: WBC is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the Global Specialty Retail industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is WBC'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.

WBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.2x
Fair PE Ratio	15.9x

Price-To-Earnings vs Fair Ratio: WBC is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).

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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