Calculating The Intrinsic Value Of Baumart Holdings Limited (ASX:BMH)

Baumart Holdings Limited (ASX:BMH) is an Australian company that procures, supplies, and installs building products and materials for the residential and commercial construction markets. With a market capitalization of AUD 10.28 million and an enterprise value of AUD 10.30 million, the company's valuation multiples are high compared to its peers and historical averages. In this article, we will explore the key financial metrics and valuation multiples of ASX:BMH and compare them to industry peers to determine its intrinsic value.



1. Price-to-Sales (P/S) Ratio: ASX:BMH's P/S ratio is 21.11, which is relatively high compared to the industry average of 8.03x. This suggests that the market values ASX:BMH's revenue highly, possibly due to its unique position in Asia and global perspective.
2. Price-to-Earnings (P/E) Ratio: ASX:BMH's P/E ratio is not available, but we can compare it to industry peers once the data is available.
3. Price-to-Cash Flow (P/OCF) and Price-to-Free Cash Flow (P/FCFE) Ratios: ASX:BMH's P/OCF and P/FCFE ratios are not available, but we can compare them to industry peers once the data is available.
4. Price-to-Book (P/B) Ratio: ASX:BMH's P/B ratio is 20.77, which is higher than the industry average of 5.45x. This suggests that the market values ASX:BMH's assets highly.
5. Enterprise Value (EV) to Sales (EV/S), Gross Profit (EV/GP), Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA), Earnings Before Interest and Taxes (EV/EBIT), Operating Cash Flow (EV/OCF), and Free Cash Flow (EV/FCFF) Ratios: ASX:BMH's EV/S ratio is 21.15, which is higher than the industry average of 7.99x. The EV/EBITDA ratio is 21.15, which is also higher than the industry average of 8.94x. This suggests that the market values ASX:BMH's cash flows and earnings highly.
6. EV to Invested Capital (EV/IC) Ratio: ASX:BMH's EV/IC ratio is not available, but we can compare it to industry peers once the data is available.



When comparing ASX:BMH to industry peers, it's essential to consider the company's unique position and global perspective. The high valuation multiples may be justified by the company's glocal perspective, which allows it to enjoy the best of both worlds. However, it's crucial to analyze the company's financial performance and growth prospects to determine if the high valuation multiples are warranted.

In conclusion, ASX:BMH's high valuation multiples, such as P/S of 21.11, P/B of 20.77, EV/S of 21.15, and EV/EBITDA of 21.15, suggest that the market values the company highly. However, the company's poor financial performance, with a net income of -$4.68 million and a loss per share of -$0.03, may indicate that it is overvalued. Investors should carefully evaluate ASX:BMH's risks and challenges, such as its high debt levels, exposure to industry and market risks, and competitive landscape, before making an investment decision. By comparing ASX:BMH's valuation multiples to industry peers and analyzing its financial performance, investors can determine if the company is overvalued, undervalued, or fairly valued.