Lepu Medical Technology (Beijing) Valuation

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

Below Fair Value: LEPU ($18) is trading above our estimate of fair value ($0.27)

Significantly Below Fair Value: LEPU is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LEPU. This is calculated by dividing LEPU's market cap by their current earnings.
What is LEPU's PE Ratio?
PE Ratio	30.9x
Earnings	CN¥707.26m
Market Cap	CN¥21.88b

LEPU 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	3.9x
Enterprise Value/EBITDA	17.9x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LEPU 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	67.5x
MOVE Medacta Group	42.1x	18.4%	CHF 2.2b
METN Metall Zug	7.4x	-29.6%	CHF 504.0m
MED Medartis Holding	188.8x	53.9%	CHF 783.1m
SOON Sonova Holding	31.7x	11.2%	CHF 17.9b
LEPU Lepu Medical Technology (Beijing)	30.9x	36.8%	US$21.9b

Price-To-Earnings vs Peers: LEPU is good value based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (68.9x).

Price to Earnings Ratio vs Industry

How does LEPU's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LEPU is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the European Medical Equipment industry average (29.8x).

Price to Earnings Ratio vs Fair Ratio

What is LEPU'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.

LEPU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.9x
Fair PE Ratio	39.9x

Price-To-Earnings vs Fair Ratio: LEPU is good value based on its Price-To-Earnings Ratio (30.9x) compared to the estimated Fair Price-To-Earnings Ratio (39.9x).

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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