Zambia Forestry and Forest Industries Corporation Plc

LUSE:ZFCO Stock Report

Market Cap: K1.2b

Zambia Forestry and Forest Industries Valuation

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

Below Fair Value: ZFCO (ZMW2.97) is trading below our estimate of fair value (ZMW5.13)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ZFCO. This is calculated by dividing ZFCO's market cap by their current earnings.
What is ZFCO's PE Ratio?
PE Ratio1x
EarningsK1.15b
Market CapK1.19b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZFCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.8x
CHILANGA Chilanga Cement
11.4xn/aK4.2b
ALMOU Moulinvest
20.1x66.6%€39.9m
DOMINAN Dominant Enterprise Berhad
7.8xn/aRM 135.5m
MPBS Manufacture De Panneaux Bois Du Sud
0.07xn/aد.ت120.4m
ZFCO Zambia Forestry and Forest Industries
1xn/aK1.1b

Price-To-Earnings vs Peers: ZFCO is good value based on its Price-To-Earnings Ratio (1x) compared to the peer average (9.2x).


Price to Earnings Ratio vs Industry

How does ZFCO's PE Ratio compare vs other companies in the Global Forestry Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.16.0x26.2%
ZFCO Zambia Forestry and Forest Industries
1xn/aUS$41.35m
ZFCO 1.0xIndustry Avg. 16.0xNo. of Companies34PE01632486480+
8 CompaniesEstimated GrowthMarket Cap
Industry Avg.16.0x26.2%
ZFCO Zambia Forestry and Forest Industries
1xn/aUS$41.35m
No more companies

Price-To-Earnings vs Industry: ZFCO is good value based on its Price-To-Earnings Ratio (1x) compared to the Global Forestry industry average (15.3x).


Price to Earnings Ratio vs Fair Ratio

What is ZFCO'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.

ZFCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ZFCO'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.


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