China Construction Bank Corporation

XSSC:601939 Stock Report

Market Cap: CN¥1.4t

China Construction Bank Valuation

Is 601939 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 601939 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601939 (CN¥7.88) is trading below our estimate of fair value (CN¥26.78)

Significantly Below Fair Value: 601939 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601939?

Key metric: As 601939 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601939. This is calculated by dividing 601939's market cap by their current earnings.
What is 601939's PE Ratio?
PE Ratio4.1x
EarningsCN¥327.87b
Market CapCN¥1.38t

Price to Earnings Ratio vs Peers

How does 601939's PE Ratio compare to its peers?

The above table shows the PE ratio for 601939 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6x
600036 China Merchants Bank
6.5x6.5%CN¥895.5b
601166 Industrial Bank
5.3x6.5%CN¥369.0b
600000 Shanghai Pudong Development Bank
7.1x10.0%CN¥273.9b
000001 Ping An Bank
5x5.6%CN¥217.0b
601939 China Construction Bank
4.1x4.0%CN¥1.5t

Price-To-Earnings vs Peers: 601939 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (5.9x).

Price to Earnings Ratio vs Industry

How does 601939's PE Ratio compare vs other companies in the CN Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
601939 4.1xIndustry Avg. 5.8xNo. of Companies15PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 601939 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the CN Banks industry average (5.7x).

Price to Earnings Ratio vs Fair Ratio

What is 601939'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.

601939 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: 601939 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

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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