SGHC Valuation

SGHC Ltd

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11.520

-0.23(-1.957%)1D

SGHC Relative Valuation

SGHC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SGHC is overvalued; if below, it's undervalued.

Historical Valuation

SGHC Ltd (SGHC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.57 is considered Undervalued compared with the five-year average of 19.87. The fair price of SGHC Ltd (SGHC) is between 16.36 to 25.71 according to relative valuation methord. Compared to the current price of 11.52 USD , SGHC Ltd is Undervalued By 29.6%.

Relative Value

Fair Zone

16.36-25.71

Current Price：11.52

29.6%

Undervalued

15.57

Trailing

Forward

8.53

EV/EBITDA

SGHC Ltd. (SGHC) has a current EV/EBITDA of 8.53. The 5-year average EV/EBITDA is 6.88. The thresholds are as follows: Strongly Undervalued below -1.59, Undervalued between -1.59 and 2.65, Fairly Valued between 11.12 and 2.65, Overvalued between 11.12 and 15.35, and Strongly Overvalued above 15.35. The current Forward EV/EBITDA of 8.53 falls within the Historic Trend Line -Fairly Valued range.

11.24

EV/EBIT

SGHC Ltd. (SGHC) has a current EV/EBIT of 11.24. The 5-year average EV/EBIT is 9.08. The thresholds are as follows: Strongly Undervalued below -3.22, Undervalued between -3.22 and 2.93, Fairly Valued between 15.24 and 2.93, Overvalued between 15.24 and 21.39, and Strongly Overvalued above 21.39. The current Forward EV/EBIT of 11.24 falls within the Historic Trend Line -Fairly Valued range.

11.52

SGHC Ltd. (SGHC) has a current PS of 11.52. The 5-year average PS is 1.29. The thresholds are as follows: Strongly Undervalued below -1.19, Undervalued between -1.19 and 0.05, Fairly Valued between 2.53 and 0.05, Overvalued between 2.53 and 3.77, and Strongly Overvalued above 3.77. The current Forward PS of 11.52 falls within the Strongly Overvalued range.

12.06

P/OCF

SGHC Ltd. (SGHC) has a current P/OCF of 12.06. The 5-year average P/OCF is 2.99. The thresholds are as follows: Strongly Undervalued below -6.78, Undervalued between -6.78 and -1.90, Fairly Valued between 7.87 and -1.90, Overvalued between 7.87 and 12.75, and Strongly Overvalued above 12.75. The current Forward P/OCF of 12.06 falls within the Overvalued range.

15.48

P/FCF

SGHC Ltd. (SGHC) has a current P/FCF of 15.48. The 5-year average P/FCF is 12.82. The thresholds are as follows: Strongly Undervalued below -12.23, Undervalued between -12.23 and 0.29, Fairly Valued between 25.35 and 0.29, Overvalued between 25.35 and 37.88, and Strongly Overvalued above 37.88. The current Forward P/FCF of 15.48 falls within the Historic Trend Line -Fairly Valued range.

SGHC Ltd (SGHC) has a current Price-to-Book (P/B) ratio of 7.82. Compared to its 3-year average P/B ratio of 4.36 , the current P/B ratio is approximately 79.31% higher. Relative to its 5-year average P/B ratio of 5.33, the current P/B ratio is about 46.65% higher. SGHC Ltd (SGHC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.15%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.71% , the current FCF yield is about -100.00% lower.

7.82

P/B

Median3y

4.36

Median5y

5.33

0.00

FCF Yield

Median3y

2.15

Median5y

8.71

Competitors Valuation Multiple

The average P/S ratio for SGHC's competitors is 37.83, providing a benchmark for relative valuation. SGHC Ltd Corp (SGHC) exhibits a P/S ratio of 11.52, which is -69.55% above the industry average. Given its robust revenue growth of 25.49%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Caesars Entertainment Inc

Rush Street Interactive Inc

Brightstar Lottery PLC

16.55

7.16%

3.14B

Performance Decomposition

Market capitalization of SGHC increased by 78.34% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.14 to 25.43.

The secondary factor is the Revenue Growth, contributed 25.49%to the performance.

Overall, the performance of SGHC in the past 1 year is driven by P/E Change. Which is more unsustainable.

25.49%

412.00M → 517.00M

Revenue Growth

4.49%

10.92 → 11.41

Margin Expansion

48.36%

17.14 → 25.43

P/E Change

78.34%