Southern Sun Ltd. (SSU) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Southern Sun Ltd. stock ZAR 18.95, price ZAR 10.61, upside +78.6%, quality 68 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range 2.54 ZAR – 10.99 ZAR · fair‑value band 9.91 ZAR – 24.69 ZAR · the 10.61 ZAR price screens below the 18.95 ZAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Southern Sun Limited owns, leases, and manages hotels in South Africa, Mozambique, the Seychelles, Tanzania, the United Arab Emirates, and Zambia. The company operates through four segments: Manco, Sandton Consortium, SA Portfolio, and Offshore.
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It operates hotels and resorts under the Southern Sun Hotels, Southern Sun Resorts, StayEasy, Garden Court, SUN1, SunSquare, and Sandton Convention Centre brands, as well as Arabella Hotel, Golf & Spa, Mount Grace Hotel & Spa, Sandton Sun & Towers, Beverly Hills, 54 on Bath, and Paradise Sun brands.
It also operates InterContinental brand under a license. The company was formerly known as Tsogo Sun Hotels Limited. Southern Sun Limited was incorporated in 1969 and is based in Sandton, South Africa.
Stock analysis
Southern Sun Ltd. (SSU) currently trades at 10.61 ZAR, while our model-based Fair Value estimate is 18.95 ZAR, implying the stock looks roughly 44% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of 24.12 ZAR per share, and 14 of the 26 models we run sit above the 10.61 ZAR price.
Bear case: the Asset-Based group reads lowest at 4.76 ZAR, and 12 of the 26 models stay below the price. Data coverage for this calculation is low.
Scenario range: 9.91 ZAR (bear) to 24.69 ZAR (bull), the price of 10.61 ZAR sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Southern Sun Ltd. reported revenue of 7.2B ZAR in FY2026 versus 2.5B ZAR in FY2022, a compound +29.7%/yr. Reported net income was 1.2B ZAR in FY2026.
Key figures
Market cap 14.2B ZAR (≈ $863M) Small · P/E ratio 11.5 · P/S ratio 1.98 · EPS (TTM) 0.9226 ZAR · Dividend yield 2.8% · Net margin 17.2% · Return on equity 13.1% · Return on assets (EBIT) 9.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 68 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 21% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −27% fair-value upside, at 79%, SSU screens cheaper than that median.
Fair Value models
Bear9.91 ZARFair Value 18.95 ZARBull24.69 ZAR
Price 10.61 ZAR · Upside +78.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (0.3666 ZAR per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+47.3%
Start year 2021 (pandemic)
Revenue growth 9 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.4%
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What shareholders gained per year (last 3 years), in ZAR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+15.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.3%
Dividend (yield on the price)2.8%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−63% → 25%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+15.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about +11.4% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Lodging · 158 stocks
Beats the industry median on 13/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+78.6% · Top 25%
Profitability
Return on equity (12 months)13.1% · Top 25%
Return on assets8.6% · Top 25%
Net margin (12 months)17.2% · Above median
Operating margin (12 months)31.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)11.7% · Above median
Dividend yield (12 months)2.8% · Above median
Balance sheet
Debt / equity0.02× · Lowest 25%
Valuation Multiplesvs Lodging median · lower = cheaper
P/E (12 months)11.5× · Cheapest 25%
P/B1.46× · Pricier than median
P/S (12 months)1.98× · Cheaper than median
Price / free cash flow (fiscal year)17.3× · Cheaper than median
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Cite: Fair Value Calculator (2026). "Southern Sun Ltd. Fair Value". https://www.fairvalue-calculator.com/stock/SSU
Frequently asked questions
Is Southern Sun Ltd. (SSU) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of 18.95 ZAR versus a price of 10.61 ZAR, about +79% upside (undervalued).
What is the fair value of SSU?
Our model-based fair value for Southern Sun Ltd. is 18.95 ZAR (as of Nov 5, 2026), built from audited fundamentals. The current price: 10.61 ZAR.
What is the quality score of SSU?
Southern Sun Ltd. has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Southern Sun Ltd. (SSU)?
Our model-based price target is the fair value of 18.95 ZAR (as of Nov 5, 2026) from 26 valuation models. Cautious scenario 9.91 ZAR, optimistic scenario 24.69 ZAR. It is a calculation from audited fundamentals, not an analyst target.
What is the Southern Sun Ltd. stock forecast for 2026?
Our models put fair value at 18.95 ZAR, about +79% upside versus a price of 10.61 ZAR (undervalued). Cautious scenario 9.91 ZAR, optimistic scenario 24.69 ZAR. The calculation is refreshed regularly with new filings.
What is the revenue of Southern Sun Ltd. (SSU)?
Southern Sun Ltd. reported trailing-twelve-month revenue of about 7.2B ZAR (latest available figure, as of Nov 5, 2026).
Does Southern Sun Ltd. pay a dividend?
Southern Sun Ltd. currently shows a dividend yield of 2.83% relative to its recent price (as of Nov 5, 2026).
How much is the dividend of Southern Sun Ltd. (SSU) and when is the ex-dividend date?
Southern Sun Ltd. pays a dividend of 0.3 ZAR per share a year, a dividend yield of 2.8%. The last ex-dividend date was Jun 10, 2026. The payout ratio is 33.3% of earnings. Free cash flow covers the dividend 2.10 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Southern Sun Ltd. (SSU)?
For today's price to be fair in a discounted-cash-flow model, Southern Sun Ltd. would have to grow free cash flow by +15.0 % per year for five years (discount rate 13.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +47.3 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of SSU use?
Our models discount Southern Sun Ltd. at 13.4 %: a base by market capitalisation (small), damped by beta 0.13, country premium for South Africa. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Southern Sun Ltd. that is +15.0 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (13.4 %) and the same formula as our fair value.
How much growth has Southern Sun Ltd. (SSU) delivered so far?
Over the past 5 years revenue at Southern Sun Ltd. grew +47.3 % a year. The price currently implies free-cash-flow growth of +15.0 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Southern Sun Ltd. (SSU) growing?
The median revenue growth in the sector is +4.8 % a year. That is the yardstick for the growth priced into Southern Sun Ltd. (+15.0 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Southern Sun Ltd. (SSU)?
The free-cash-flow yield on the price is 5.78 %: that much free cash flow Southern Sun Ltd. produces per unit of market value. When it exceeds the discount rate of our models (13.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Southern Sun Ltd. (SSU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Southern Sun Ltd. it is 18.95 ZAR per share (as of Nov 5, 2026), against a price of 10.61 ZAR. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Southern Sun Ltd. stock overvalued or undervalued in 2026?
As of Nov 5, 2026, SSU trades below its calculated fair value: price 10.61 ZAR, fair value 18.95 ZAR, a gap of about +79% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SSU?
No. The price is what the market pays today (10.61 ZAR); the fair value is what the company's own numbers justify (18.95 ZAR). For Southern Sun Ltd. the two are 8.34 ZAR per share apart. That gap is exactly why we show both numbers side by side.
How much is Southern Sun Ltd. worth?
The market values Southern Sun Ltd. at about 14.2B ZAR (market capitalisation, as of Nov 5, 2026). Per share that is 10.61 ZAR; our models calculate a fair value of 18.95 ZAR per share.
What do the bullish and bearish scenarios say about SSU?
Our models span a range for Southern Sun Ltd.: cautious scenario 9.91 ZAR, base 18.95 ZAR, optimistic 24.69 ZAR per share (as of Nov 5, 2026, price 10.61 ZAR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SSU?
Southern Sun Ltd. trades at a price-to-earnings ratio of 11.5 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 18.95 ZAR is built from several models across several years. Other multiples: P/B 1.5, P/S 2.0, EV/EBITDA 6.7.
How solid is the balance sheet of Southern Sun Ltd. (SSU)?
Balance-sheet figures for Southern Sun Ltd. (as of Nov 5, 2026): return on equity 13.1%, debt of 0.02 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is SSU from its 52-week high?
Southern Sun Ltd. trades at 10.61 ZAR, about 3% below its 52-week high of 10.99 ZAR and 21% above the low of 8.73 ZAR (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of 18.95 ZAR is for.
Which stocks are comparable to Southern Sun Ltd.?
From the same area (Consumer Cyclical) we also value Marriott International, Inc, Hilton Worldwide Holdings, Hyatt Hotels Corporation, H World Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Southern Sun Ltd. stock attractive at the current price?
The data as of Nov 5, 2026: price 10.61 ZAR, calculated fair value 18.95 ZAR (+79%), Quality Score 68/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SSU calculated?
We run Southern Sun Ltd. through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 18.95 ZAR builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Southern Sun Ltd. currently trades 44% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Southern Sun Ltd. (SSU)?
The closing price on Nov 9, 2026 was 10.61 ZAR. Our model-based fair value is 18.95 ZAR, about +79% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Southern Sun Ltd. right now?
The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (9.91 ZAR to 24.69 ZAR) leaves room in how you read the outcome.
Key figures of Southern Sun Ltd.
How large is the market capitalisation of Southern Sun Ltd. (SSU)?
The market capitalisation of Southern Sun Ltd. is 14.2B ZAR (≈ $863M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Southern Sun Ltd. (SSU)?
The price-to-sales ratio of Southern Sun Ltd. is 1.98 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Southern Sun Ltd. (SSU)?
Earnings per share at Southern Sun Ltd. are 0.9226 ZAR (price ÷ EPS = P/E 11.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Southern Sun Ltd. (SSU)?
The dividend yield of Southern Sun Ltd. is 2.8% (payout 32.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Southern Sun Ltd. (SSU)?
The net margin of Southern Sun Ltd. is 17.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Southern Sun Ltd. (SSU)?
The return on equity (ROE) of Southern Sun Ltd. is 13.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Southern Sun Ltd. (SSU)?
On an EBIT basis the return on assets of Southern Sun Ltd. is 9.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Southern Sun Ltd. (SSU)?
The operating margin of Southern Sun Ltd. is 31.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Southern Sun Ltd. (SSU)?
Revenue at Southern Sun Ltd. is growing +11.7% versus a year earlier (3y avg +7.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Southern Sun Ltd. (SSU)?
Earnings per share at Southern Sun Ltd. are growing +31.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Southern Sun Ltd. (SSU) carry?
The net debt of Southern Sun Ltd. is 1.5B ZAR (fiscal year 2026, ≈ 1.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Nov 5, 2026