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Sasol Ltd
JSE:SOL

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Sasol Ltd
JSE:SOL
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Price: 19 346 Zac -9.9% Market Closed
Market Cap: 123.3B ZAR

EV/OCF

5.3
Current
12%
More Expensive
vs 3-y average of 4.7

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
5.3
=
Enterprise Value
Zac190B
/
Operating Cash Flow
33.5B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
5.3
=
Enterprise Value
Zac190B
/
Operating Cash Flow
33.5B

Valuation Scenarios

Sasol Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (4.7), the stock would be worth Zac17 203.27 (11% downside from current price).

Statistics
Positive Scenarios
2/3
Maximum Downside
-11%
Maximum Upside
+143%
Average Upside
46%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 5.3 Zac19 346
0%
3-Year Average 4.7 Zac17 203.27
-11%
5-Year Average 5.6 Zac20 369.2
+5%
Country Average 12.9 Zac47 025.83
+143%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
ZA
Sasol Ltd
JSE:SOL
123.6B ZAR 5.3 51.3
DE
Basf Se
XETRA:BAS
46.8B EUR 11.1 28.9
CN
Ningxia Baofeng Energy Group Co Ltd
SSE:600989
203.5B CNY 13.4 17.7
IN
Pidilite Industries Ltd
NSE:PIDILITIND
1.4T INR 54.5 61.4
ZA
Omnia Holdings Ltd
JSE:OMN
14.4B ZAR 3.8 12.1
JP
Showa Denko KK
TSE:4004
2.3T JPY 24.8 77.9
JP
Resonac Holdings Corp
XMUN:SWD
12.1B EUR 24.5 76.8
JP
Mitsubishi Chemical Group Corp
F:M3C0
7.3B EUR 4.9 14.6
JP
Mitsubishi Chemical Holdings Corp
TSE:4188
1.3T JPY 4.9 14.4
IN
SRF Ltd
NSE:SRF
739.4B INR 25.3 41
FR
Arkema SA
PAR:AKE
4.7B EUR 6.3 120.2

Market Distribution

Lower than 75% of companies in South Africa
Percentile
25th
Based on 20 companies
25th percentile
5.3
Low
5 — 10.5
Typical Range
10.5 — 130.1
High
130.1 —
Distribution Statistics
South Africa
Min 5
30th Percentile 10.5
Median 12.9
70th Percentile 130.1
Max 687

Sasol Ltd
Glance View

Market Cap
123.3B Zac
Industry
Chemicals

In the heart of South Africa, Sasol Ltd. has emerged as a global powerhouse with its roots deeply embedded in the energy and chemical sectors. Founded in 1950, Sasol was conceived with a robust vision: to turn the country's plentiful coal deposits into valuable fuels and chemical products. The company ingeniously pioneered and implemented the Fischer-Tropsch process, an intricate gas-to-liquids technology that transformed coal and gas into synthetic fuels, lubricants, and petrochemicals. This process allowed Sasol to diversify its offerings by producing an array of products including synthetic diesel, polymers, and fertilizers, which have become indispensable in various industries worldwide. Driven by innovation, the company expanded its footprint from South Africa to the global stage, establishing operations across North America, Europe, and Asia, effectively transforming local resources into global products. Sasol's financial architecture is intricately built on a foundation of its expansive production capabilities and diversified product portfolio. The company's revenue streams flow primarily from the sale of energy-related products like synthetic fuels and chemicals, serving industries such as automotive, construction, and agriculture. By marrying their operational prowess in extracting value from raw materials with strategic investments in technology and infrastructure, Sasol has been able to navigate the volatile markets of the energy sector. This adaptability has been pivotal in maintaining its financial health against the backdrop of fluctuating global oil prices. Alongside its traditional energy ventures, Sasol has committed to embracing sustainable practices by investing in green technologies and aiming for a lower-carbon future, a testament to its evolving business strategy in a world increasingly conscious of environmental imperatives.

SOL Intrinsic Value
30 655.91 Zac
Undervaluation 37%
Intrinsic Value
Price Zac19 346
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