Lenovo Group Valuation

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

LEN (CHF0.81) is trading below our estimate of [[fair value]] (CHF1.82)

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

Below Fair Value: LEN (CHF0.81) is trading below our estimate of fair value (CHF1.82)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LEN. This is calculated by dividing LEN's market cap by their current earnings.
What is LEN's PE Ratio?
PE Ratio	12.3x
Earnings	US$1.19b
Market Cap	US$14.61b

LEN 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	0.2x
Enterprise Value/EBITDA	4.7x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LEN 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	45x
LOGN Logitech International	16.8x	0.4%	CHF 10.5b
ALSN ALSO Holding	26.6x	27.4%	CHF 2.8b
2357 ASUSTeK Computer	13.5x	4.4%	NT$453.8b
COTN Comet Holding	123x	48.6%	CHF 2.2b
LEN Lenovo Group	12.3x	18.1%	CHF 113.8b

Price-To-Earnings vs Peers: LEN is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (45.4x).

Price to Earnings Ratio vs Industry

How does LEN's PE Ratio compare vs other companies in the European Tech Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LEN is good value based on its Price-To-Earnings Ratio (12.3x) compared to the Global Tech industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is LEN'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.

LEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.3x
Fair PE Ratio	24.3x

Price-To-Earnings vs Fair Ratio: LEN is good value based on its Price-To-Earnings Ratio (12.3x) 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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