GEM Valuation

Is GEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GEM ($12) is trading below our estimate of fair value ($62.71)

Significantly Below Fair Value: GEM is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for GEM?

Key metric: As GEM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GEM. This is calculated by dividing GEM's market cap by their current earnings.
What is GEM's PE Ratio?
PE Ratio27.2x
EarningsCN¥1.29b
Market CapCN¥35.12b

Price to Earnings Ratio vs Peers

How does GEM's PE Ratio compare to its peers?

The above table shows the PE ratio for GEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.5x
HUBN Huber+Suhner
22.1x14.9%CHF 1.3b
PMN Phoenix Mecano
10.9x6.0%CHF 432.6m
ROL Von Roll Holding
42.3xn/aCHF 287.3m
26.6x9.2%CHF 92.3b
GEM GEM
27.2x37.2%US$35.1b

Price-To-Earnings vs Peers: GEM is expensive based on its Price-To-Earnings Ratio (27.2x) compared to the peer average (25.5x).


Price to Earnings Ratio vs Industry

How does GEM's PE Ratio compare vs other companies in the European Electrical Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GEM 27.2xIndustry Avg. 16.3xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GEM is expensive based on its Price-To-Earnings Ratio (27.2x) compared to the European Electrical industry average (16.3x).


Price to Earnings Ratio vs Fair Ratio

What is GEM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.2x
Fair PE Ratio35.6x

Price-To-Earnings vs Fair Ratio: GEM is good value based on its Price-To-Earnings Ratio (27.2x) compared to the estimated Fair Price-To-Earnings Ratio (35.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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