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SGH Limited (SGH) Fair Value & Analysis

Industrials · AU · Market cap A$17.8B

SL SGH Limited SGH · AU
PriceA$46.45
Fair ValueA$21.84
Upside-53.0%
Quality47/100
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Healthy Growth
Thin margins · 4.4% net margin
Moderate debt · generates free cash flow
1.46% dividend yield
Trails peers (4/15)
Moderate moat 45/100
Evidence: High Range A$16.38 – A$27.30 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 20 days ago

Share price +4.1% over the past month.

Below-average quality, and screening another 53% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$27.30). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (21 months)

A$54.88 A$38.10 Fair Value A$21.84 Nov 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

21‑month range A$38.10 – A$54.88 · fair‑value band A$16.38 – A$27.30 · the A$46.45 price screens above the A$21.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

SGH Limited (SGH) currently trades at A$46.45, while our model-based Fair Value estimate is A$21.84, implying the stock looks roughly 53.0% overvalued today. We read business quality at 47/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, SGH Limited generated revenue of A$10.5B at a net margin of 4.4%. Revenue grew 2.7% year over year. It earns a return on equity of 12.0%. Net debt stands at A$5.2B. Fundamentals as of Jul 18, 2026

Our scenario range runs from A$16.38 (bear case) to A$27.30 (bull case); at A$46.45, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 16% below its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -53%, SGH screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF A$16.17 A$41.11 A$81.97 80
Residual Income A$10.58 A$12.09 A$23.13 76
Rev-Margin DCF A$24.54 A$53.93 A$115.23 74
All 24 models by family
DCF Models
FCF DCF A$17.77 A$33.21 A$82.38 38
Owner Earnings A$1.33 A$14.70 A$42.76 31
5Y Revenue Exit A$21.22 A$46.04 A$98.21 39
5Y EBITDA Exit A$30.54 A$64.88 A$132.38 41
5Y P/E Exit A$12.77 A$38.33 A$72.90 38
10Y Revenue Exit A$19.50 A$59.83 A$87.37 36
10Y EBITDA Exit A$27.59 A$79.89 A$173.39 37
10Y P/E Exit A$14.63 A$41.64 A$85.45 35
Earnings-Based
Graham-Dodd A$8.74 A$60.93 A$85.50 54
Lynch FV A$31.48 A$44.97 A$58.46 50
PEG = 1.0 A$31.48 A$44.97 A$58.46 46
EPV A$13.95 A$17.80 A$21.17 59
Multiples
P/E Multiple A$19.27 A$25.70 A$32.12 63
P/S Multiple A$16.38 A$21.84 A$27.30 58
P/B Multiple A$16.38 A$21.84 A$27.30 55
EV/EBIT A$33.02 A$47.07 A$61.13 53
EV/EBITDA A$33.64 A$47.90 A$62.17 54
EV/Revenue A$19.27 A$31.45 A$43.63 43
Asset-Based
NCAV (Graham) A$5.87 A$7.86 A$11.74 50
Growth DCF
Growth DCF A$16.17 A$41.11 A$81.97 80
Rev-Margin DCF A$24.54 A$53.93 A$115.23 74
Economic Profit
Residual Income A$10.58 A$12.09 A$23.13 76
ROIC Compounder A$17.02 A$27.61 A$38.14 72
Growth Earnings
Growth-Adj P/E A$40.56 A$57.94 A$75.33 68

Widest divergence: Growth Earnings (A$57.94) versus Asset-Based (A$7.86). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$10.5B
Revenue growth (YoY) +2.7%
Net margin 4.4%
Return on equity 12.0%
Free cash flow A$651M FY2025
P/E ratio 39.5
More key figures
Operating margin 11.1%
EPS (TTM) A$1.23
Dividend yield 1.5%
EPS growth (YoY) -4.8%
Net debt A$5.2B FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 48 · Market factors (momentum, volatility) 47

Profitability 46
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 22
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

SGH Limited engages in the heavy equipment sales and service, equipment hire, construction materials, media, broadcasting, and energy assets businesses. It operates through WesTrac, Coates, Boral, Energy, Media Investments, and Other Investments segments. The company operates as a Caterpillar dealer providing heavy equipment sales and support services.

Full company description

SGH Limited engages in the heavy equipment sales and service, equipment hire, construction materials, media, broadcasting, and energy assets businesses. It operates through WesTrac, Coates, Boral, Energy, Media Investments, and Other Investments segments. The company operates as a Caterpillar dealer providing heavy equipment sales and support services. It also provides a range of general and specialist equipment on hire to various markets, including engineering, building construction and maintenance, mining and resources, manufacturing, government, and events. In addition, the company is involved in the designing, manufacturing, assembly, distribution, and support of mobile lighting towers, as well as pumps and dewatering equipment; and distribution of FG Wilson generators and Perkins engines. Further, it invests in listed and unlisted media organizations, as well as private equity investments; and holds oil and gas interests; invests in properties; and produces, supplies, and sells construction materials comprising quarry products, cement, concrete, asphalt, and recycled materials. It operates in Australia, the United Arab Emirates, Indonesia, and the United States. SGH Limited was formerly known as Seven Group Holdings Limited and changed its name to SGH Limited in November 2024. The company was incorporated in 2010 and is headquartered in Sydney, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

SGH Limited reported revenue of A$10.7B in FY2025 versus A$5.2B in FY2021, a compound +19.8%/yr. Reported net income was A$523M in FY2025, compounding +145.2%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$10.7B
Latest YoY
+1.2%
Avg. growth/yr (3Y)
+6.1%
Avg. growth/yr (5Y)
+131.5%
Avg. growth/yr (25Y)
+10.0%
Revenue +19.8%/yr
FY21 A$5.2B
FY22 A$9.0B
FY23 A$9.6B
FY24 A$10.6B
FY25 A$10.7B
Net income +145.2%/yr
FY21 A$14.5M
FY22 A$558M
FY23 A$597M
FY24 A$464M
FY25 A$523M

SGH screens 53% overvalued. Compare with CITIC Limited →

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Cite: Fair Value Calculator (2026). "SGH Limited Fair Value". https://www.fairvalue-calculator.com/stock/SGH

Peer Group

Conglomerates · 371 stocks

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.

Quality Score 47 · Below median
Fair Value upside −53% · Below median
Return on equity (TTM) 12% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.82× · Higher than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 40.9× · Pricier than 75% of peers
P/B 2.64× · Pricier than 75% of peers
P/S (TTM) 1.20× · Pricier than median
P/FCF 19.3× · Pricier than 75% of peers
EV/EBITDA 11.0× · Pricier than median
PEG 5.26× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 19
FUTURE 14 · sector 16
PAST 48 · sector 20
HEALTH 59 · sector 89
DIVIDEND 29 · sector 40

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

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SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%
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Thermax Limited THERMAX ₹4,809 ₹1,087 -77%

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Frequently asked questions

Is SGH Limited (SGH) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of A$21.84 versus a price of A$46.45, about −53% (overvalued).
What is the fair value of SGH?
Our model-based fair value for SGH Limited is A$21.84 (as of Jul 18, 2026), built from audited fundamentals. The current price is A$46.45.
What is the quality score of SGH?
SGH Limited has a Quality Score of 47/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of SGH Limited (SGH)?
SGH Limited reported trailing-twelve-month revenue of about A$10.5B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of SGH?
The net profit margin of SGH Limited is about 4.4%, meaning it keeps roughly 4.4% of revenue as net income. Based on the latest reported figures.
Does SGH Limited pay a dividend?
SGH Limited currently shows a dividend yield of about 1.54% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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