Zhejiang HangKe Technology Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: ZHT ($9.8) is trading below our estimate of fair value ($11.34)

Significantly Below Fair Value: ZHT is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ZHT. This is calculated by dividing ZHT's market cap by their current earnings.
What is ZHT's PE Ratio?
PE Ratio	27.3x
Earnings	CN¥471.19m
Market Cap	CN¥12.86b

ZHT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	21.3x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZHT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20.8x
HUBN Huber+Suhner	22.1x	14.9%	CHF 1.3b
PMN Phoenix Mecano	10.9x	6.0%	CHF 432.6m
ROL Von Roll Holding	42.3x	n/a	CHF 287.3m
GAV Carlo Gavazzi Holding	7.8x	n/a	CHF 145.0m
ZHT Zhejiang HangKe Technology	27.3x	36.7%	US$12.9b

Price-To-Earnings vs Peers: ZHT is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ZHT is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the European Electrical industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is ZHT'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.

ZHT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.3x
Fair PE Ratio	30.8x

Price-To-Earnings vs Fair Ratio: ZHT is good value based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

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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