Post by
Bezostothemoon on Sep 09, 2021 3:59pm
DCM- Market/Competitor Comparison
Hello everyone,
It wasn't long ago when long-term shareholders were giving bullish analysis and forward-looking estimates on DCM future. The E-Research piece was an excellent basepoint to validate our analysis and showed how undervalued DCM currently is.
For some stocks, it's good to compare to the overall market + their competitors to get a good grasp of where the stock is currently sitting. I will do that for DCM using some popular Ratios compared against the S&P/TSX + DCM’s competitors.
DCM Current P/E Ratio (mrq)= 7.43
The current average P/E Ratio of Canada’s stock market is 38.12
The current average P/E Ratio of all 45 competitors is 45.00
DCM Current Price/Sales Ratio 0.21 (TTM)
The Current S&P 500 average Price/Sales Ratio 3.23
The current average Price/Sales Ratio of all 45 competitors is 5.57
DCM Current Price/Book Ratio 3.73 (mrq)
The Current S&P 500 average Price/Book Ratio 4.80
The current average Price/Book Ratio of all 45 competitors is 11.12
DCM Current EV/REV Ratio 0.55
The Current S&P average 500 EV/REV Ratio 14.20
The current average EV/REV of all 45 competitors is 5.36
DCM Current EV/ EBITDA Ratio 8.94
The Current S&P 500 average EV/ EBITDA Ratio 14.20
The current average EV/ EBITDA of all 45 competitors is 19.70
As you can see, the DCM ratios indicate that DCM is significantly undervalued when compared against the market and its direct competitors (Just look at that EV/REV). With this in mind, I am confident in this company and am just waiting for DCM to get noticed. With the market performing well, I am confident we could see upward momentum over the next quarter into that $2 range. With the stock somewhat down, I will continue to add to my position.
I used the Yahoo Finance Statistics section for DCM and competitors. All resources are linked below for S&P and TSX averages. I know yahoo may not be perfectly accurate, but the difference between DCM, the market and all the competitors are very different, so you see the point. It was also very hard to find average stats on TSX, so I used S&P500 as a base instead. If you could find some averages for the TSX, please share.
Note: For competitor comparison, I used an excel document to gather all the stats, then averaged them. I used all the competitors that Eresearch provided in his analysis (around 45 of them). I ignored the companies trading at negative P/E ratios (due to Neg EPS) and Companies with Negative EV/EBITDA ratios (due to having neg EBITDA).
Overall hope everyone enjoyed it.
Resources
TSX PE- https://siblisresearch.com/data/tsx-composite-return-dividend/
S&P 500 Price/Sales- https://www.multpl.com/s-p-500-price-to-sales
S&P 500 Price/Book- https://www.multpl.com/s-p-500-price-to-book
S&P 500 EV/ Rev- https://finbox.com/NYSE:SPGI/explorer/ev_to_revenue_ltm
S&P 500 EV/ EBITDA- https://www.investopedia.com/ask/answers/072715/what-considered-healthy-evebitda.asp#:~:text=1%EF%BB%BF%20EBITDA%20measures%20a,average%20by%20analysts%20and%20investors.