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Southern Sun Limited (SSU) Fair Value & Analysis

Consumer Cyclical · ZA · Market cap 13.3B ZAR

SS Southern Sun Limited SSU · JSE
Price10.03 ZAR
Fair Value19.41 ZAR
Upside+93.5%
Quality68/100
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Healthy Growth
Solidly profitable · 17.2% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Wide moat 67/100
Evidence: High Range 13.28 ZAR – 29.32 ZAR Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 24 days ago

Share price +2.7% over the past month.

A solid business, screening 94% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (13.28 ZAR). The market is more pessimistic than our downside scenario.
  • 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 (13.28 ZAR to 29.32 ZAR) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

10.88 ZAR 1.95 ZAR Fair Value 19.41 ZAR Apr 2021 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

60‑month range 1.95 ZAR – 10.88 ZAR · fair‑value band 13.28 ZAR – 29.32 ZAR · the 10.03 ZAR price screens below the 19.41 ZAR fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Southern Sun Limited (SSU) currently trades at 10.03 ZAR, while our model-based Fair Value estimate is 19.41 ZAR, implying the stock looks roughly 93.5% undervalued today. The Quality Score stands at 68/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Southern Sun Limited generated revenue of 7.2B ZAR at a net margin of 17.2%. Revenue grew 11.7% year over year. It earns a return on equity of 13.1%. Net debt stands at 1.5B ZAR. Fundamentals as of Jul 18, 2026

Our scenario range runs from 13.28 ZAR (bear case) to 29.32 ZAR (bull case); at 10.03 ZAR, the current price sits below 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. For context, the median of 10 Consumer Cyclical peers we cover trades at -62% fair-value upside, at 94%, SSU screens cheaper 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 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. Evidence
Highest evidence
Growth DCF 9.24 ZAR 18.73 ZAR 34.82 ZAR 80
Residual Income 6.96 ZAR 8.63 ZAR 21.85 ZAR 76
Rev-Margin DCF 6.38 ZAR 11.17 ZAR 18.00 ZAR 74
All 26 models by family
DCF Models
FCF DCF 9.56 ZAR 16.88 ZAR 36.09 ZAR 38
Owner Earnings 12.64 ZAR 26.43 ZAR 53.78 ZAR 31
5Y Revenue Exit 6.38 ZAR 11.24 ZAR 18.36 ZAR 39
5Y EBITDA Exit 13.52 ZAR 27.30 ZAR 46.68 ZAR 41
5Y P/E Exit 13.58 ZAR 27.69 ZAR 45.33 ZAR 38
10Y Revenue Exit 7.14 ZAR 12.49 ZAR 20.62 ZAR 36
10Y EBITDA Exit 12.25 ZAR 25.07 ZAR 47.58 ZAR 37
10Y P/E Exit 12.29 ZAR 25.17 ZAR 46.34 ZAR 35
Earnings-Based
Graham-Dodd 6.39 ZAR 39.94 ZAR 55.78 ZAR 54
Lynch FV 11.50 ZAR 16.43 ZAR 21.36 ZAR 50
PEG = 1.0 11.50 ZAR 16.43 ZAR 21.36 ZAR 46
EPV 10.15 ZAR 11.79 ZAR 13.22 ZAR 59
Dividend Discount
Gordon GGM 1.17 ZAR 2.44 ZAR 3.87 ZAR 70
DDM Multi-Stage 1.17 ZAR 2.06 ZAR 2.56 ZAR 61
Multiples
P/E Multiple 15.52 ZAR 20.69 ZAR 25.86 ZAR 63
P/S Multiple 4.92 ZAR 6.56 ZAR 8.20 ZAR 58
P/B Multiple 11.99 ZAR 15.99 ZAR 19.98 ZAR 55
EV/EBIT 18.70 ZAR 24.83 ZAR 30.95 ZAR 53
EV/EBITDA 15.77 ZAR 20.91 ZAR 26.06 ZAR 54
EV/Revenue 4.92 ZAR 6.89 ZAR 8.86 ZAR 43
Asset-Based
NCAV (Graham) 3.69 ZAR 4.95 ZAR 7.39 ZAR 50
Growth DCF
Growth DCF 9.24 ZAR 18.73 ZAR 34.82 ZAR 80
Rev-Margin DCF 6.38 ZAR 11.17 ZAR 18.00 ZAR 74
Economic Profit
Residual Income 6.96 ZAR 8.63 ZAR 21.85 ZAR 76
ROIC Compounder 11.88 ZAR 17.38 ZAR 22.54 ZAR 72
Growth Earnings
Growth-Adj P/E 16.79 ZAR 23.98 ZAR 31.18 ZAR 68

Widest divergence: DCF Models (25.07 ZAR) versus Dividend Discount (2.06 ZAR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 7.2B ZAR
Revenue growth (YoY) +11.7%
Net margin 17.2%
Return on equity 13.1%
Free cash flow 822M ZAR FY2026
P/E ratio 11.2
More key figures
Operating margin 31.2%
EPS (TTM) 0.9000 ZAR
Dividend yield 0.0%
EPS growth (YoY) +30.5%
Net debt 1.5B ZAR FY2026

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

Quality Score breakdown

Overall quality 68/100

Of which business quality 64 · Market factors (momentum, volatility) 58

Profitability 47
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 69
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 100
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

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.

Full company description

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. 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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Southern Sun Limited 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.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
7.2B ZAR
Latest YoY
+8.8%
Avg. growth/yr (3Y) 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.
+7.5%
Avg. growth/yr (5Y) 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.
+47.3%
Avg. growth/yr (9Y) 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.
+6.4%
Revenue +29.7%/yr
FY22 2.5B ZAR
FY23 5.8B ZAR
FY24 6.0B ZAR
FY25 6.6B ZAR
FY26 7.2B ZAR
Net income
FY22 −156M ZAR
FY23 1.0B ZAR
FY24 856M ZAR
FY25 1.0B ZAR
FY26 1.2B ZAR

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

Peer Group

Lodging · 168 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 68 · Top 25%
Fair Value upside +94% · Top 25%
Return on equity (TTM) 13% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 31% · Top 25%
Revenue growth 12% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 11.2× · Cheaper than 75% of peers
P/B 1.37× · Pricier than median
P/S (TTM) 1.85× · Pricier than median
P/FCF 1.0× · Pricier than median
EV/EBITDA 6.2× · Cheaper 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 100 · sector 0
FUTURE 59 · sector 18
PAST 52 · sector 11
HEALTH 99 · sector 90
DIVIDEND 1 · sector 23

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

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $369.05 $135.64 -63%
Hilton Worldwide Holdings HLT $328.48 $123.67 -62%
InterContinental Hotels Group IHG $159.87 $85.18 -47%
Hyatt Hotels Corporation H $191.00 $47.69 -75%
H World Group HTHT $42.67 $47.55 +11%
Accor SA AC €47.25 €39.26 -17%
The Indian Hotels Company INDHOTEL ₹743.20 ₹260.68 -65%
Wyndham Hotels & Resorts, Inc WH $78.54 $24.02 -69%
Hanjin Kal, 180640 113,500 KRW 36,890 KRW -67%
Jabal Omar Development Company 4250 16.00 SAR 11.64 SAR -27%

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Frequently asked questions

Is Southern Sun Limited (SSU) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 19.41 ZAR versus a price of 10.03 ZAR, about +94% (undervalued).
What is the fair value of SSU?
Our model-based fair value for Southern Sun Limited is 19.41 ZAR (as of Jul 18, 2026), built from audited fundamentals. The current price is 10.03 ZAR.
What is the quality score of SSU?
Southern Sun Limited 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 revenue of Southern Sun Limited (SSU)?
Southern Sun Limited reported trailing-twelve-month revenue of about 7.2B ZAR (latest available figure, as of Jul 18, 2026).
What is the net profit margin of SSU?
The net profit margin of Southern Sun Limited is about 17.2%, meaning it keeps roughly 17.2% of revenue as net income. Based on the latest reported figures.
Does Southern Sun Limited pay a dividend?
Southern Sun Limited currently shows a dividend yield of about 0.03% 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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