ISA Holdings Valuation

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

ISA (ZAR1.89) is trading below our estimate of [[fair value]] (ZAR3.72)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ISA (ZAR1.89) is trading below our estimate of fair value (ZAR3.72)

Significantly Below Fair Value: ISA is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ISA. This is calculated by dividing ISA's market cap by their current earnings.
What is ISA's PE Ratio?
PE Ratio	10x
Earnings	R29.54m
Market Cap	R294.83m

ISA 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	2.6x
Enterprise Value/EBITDA	13.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ISA 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	29.4x
4SI 4Sight Holdings	13.1x	n/a	R362.8m
PBG PBT Group	9.1x	n/a	R588.1m
MFL Metrofile Holdings	63.5x	n/a	R1.1b
530175 Odyssey Technologies	31.8x	n/a	₹1.7b
ISA ISA Holdings	10x	n/a	R294.8m

Price-To-Earnings vs Peers: ISA is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (29.4x).

Price to Earnings Ratio vs Industry

How does ISA's PE Ratio compare vs other companies in the Global Software Industry?

32 Companies	Price / Earnings	Estimated Growth	Market Cap

32 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ISA is good value based on its Price-To-Earnings Ratio (10x) compared to the Global Software industry average (32x).

Price to Earnings Ratio vs Fair Ratio

What is ISA'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.

ISA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ISA's Price-To-Earnings Fair Ratio for valuation analysis.

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.