AECI Mining Explosives Valuation

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

AECI (ZMW31.5) is trading above our estimate of [[fair value]] (ZMW3.7)

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: AECI (ZMW31.5) is trading above our estimate of fair value (ZMW3.7)

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

Key Valuation Metric

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

Key metric: As AECI is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for AECI. This is calculated by dividing AECI's market cap by their current revenue.
What is AECI's PS Ratio?
PS Ratio	0.7x
Sales	K903.43m
Market Cap	K642.81m

AECI 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	0.6x
Enterprise Value/EBITDA	-35.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does AECI's PS Ratio compare to its peers?

The above table shows the PS ratio for AECI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.6x
ZFCO Zambia Forestry and Forest Industries	2.8x	n/a	K1.1b
A079170 Hanchang Ind.Co.Ltd	0.4x	n/a	₩35.8b
2116 Jiangsu Innovative Ecological New Materials	1.1x	n/a	HK$182.4m
A032980 BYON	2.2x	n/a	₩32.0b
AECI AECI Mining Explosives	0.7x	n/a	K642.8m

Price-To-Sales vs Peers: AECI is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does AECI's PS Ratio compare vs other companies in the African Chemicals Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: AECI is good value based on its Price-To-Sales Ratio (0.7x) compared to the African Chemicals industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is AECI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AECI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate AECI's Price-To-Sales 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.