Zhejiang Huayou Cobalt Co., Ltd

SWX:HUAYO Stock Report

Market Cap: US$7.3b

Zhejiang Huayou Cobalt Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 HUAYO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HUAYO ($9.8) is trading below our estimate of fair value ($21.86)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HUAYO. This is calculated by dividing HUAYO's market cap by their current earnings.
What is HUAYO's PE Ratio?
PE Ratio15.8x
EarningsCN¥3.36b
Market CapCN¥53.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HUAYO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.4x
HUBN Huber+Suhner
21.4x14.9%CHF 1.3b
ABBN ABB
26.6x9.1%CHF 91.1b
PMN Phoenix Mecano
11.1x8.0%CHF 439.3m
ROL Von Roll Holding
42.3xn/aCHF 287.3m
HUAYO Zhejiang Huayou Cobalt
15.8x16.7%US$53.1b

Price-To-Earnings vs Peers: HUAYO is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (25.4x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HUAYO 15.8xIndustry Avg. 16.1xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HUAYO is good value based on its Price-To-Earnings Ratio (15.8x) compared to the European Electrical industry average (16.1x).

Price to Earnings Ratio vs Fair Ratio

What is HUAYO'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.

HUAYO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio24.3x

Price-To-Earnings vs Fair Ratio: HUAYO is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.3x).

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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