Hangzhou XZB Tech Co., Ltd

SHSE:603040 Stock Report

Market Cap: CN¥3.1b

Hangzhou XZB Tech Valuation

Is 603040 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 603040 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603040 (CN¥22.99) is trading below our estimate of fair value (CN¥32.86)

Significantly Below Fair Value: 603040 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603040?

Key metric: As 603040 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603040. This is calculated by dividing 603040's market cap by their current earnings.
What is 603040's PE Ratio?
PE Ratio14.7x
EarningsCN¥211.24m
Market CapCN¥3.11b

Price to Earnings Ratio vs Peers

How does 603040's PE Ratio compare to its peers?

The above table shows the PE ratio for 603040 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.8x
603121 Shanghai Sinotec
32xn/aCN¥2.9b
001282 Wuhu Sanlian Forging
22.2xn/aCN¥3.2b
603788 Ningbo Gaofa Automotive Control System
15.5xn/aCN¥3.2b
603037 Shanghai CarthaneLtd
29.7xn/aCN¥2.9b
603040 Hangzhou XZB Tech
14.7x16.6%CN¥3.1b

Price-To-Earnings vs Peers: 603040 is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (24.8x).


Price to Earnings Ratio vs Industry

How does 603040's PE Ratio compare vs other companies in the CN Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002684 Dynavolt Renewable Energy Technology (Henan)
0.6xn/aUS$58.50m
No more companies available in this PE range
603040 14.7xIndustry Avg. 30.1xNo. of Companies26PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603040 is good value based on its Price-To-Earnings Ratio (14.7x) compared to the CN Auto Components industry average (31.3x).


Price to Earnings Ratio vs Fair Ratio

What is 603040'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.

603040 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: 603040 is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (16x).


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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