AVIC Heavy Machinery Co., Ltd.

SHSE:600765 Stock Report

Market Cap: CN¥30.7b

AVIC Heavy Machinery Valuation

Is 600765 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 600765 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600765 (CN¥20.08) is trading below our estimate of fair value (CN¥30.27)

Significantly Below Fair Value: 600765 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600765?

Key metric: As 600765 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600765. This is calculated by dividing 600765's market cap by their current earnings.
What is 600765's PE Ratio?
PE Ratio22.6x
EarningsCN¥1.31b
Market CapCN¥30.73b

Price to Earnings Ratio vs Peers

How does 600765's PE Ratio compare to its peers?

The above table shows the PE ratio for 600765 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.1x
002595 Himile Mechanical Science and Technology (Shandong)
18.5x14.6%CN¥35.6b
600582 Tiandi Science & TechnologyLtd
9.7x12.1%CN¥25.6b
601399 SINOMACH HEAVY EQUIPMENT GROUPLTD
47.1x24.2%CN¥24.1b
002008 Han's Laser Technology Industry Group
17.1x-11.5%CN¥29.1b
600765 AVIC Heavy Machinery
22.6x19.5%CN¥30.7b

Price-To-Earnings vs Peers: 600765 is good value based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (23.1x).

Price to Earnings Ratio vs Industry

How does 600765's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$428.07m
No more companies available in this PE range
600765 22.6xIndustry Avg. 35.8xNo. of Companies56PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600765 is good value based on its Price-To-Earnings Ratio (22.6x) compared to the CN Machinery industry average (35.8x).

Price to Earnings Ratio vs Fair Ratio

What is 600765'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.

600765 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio25.1x

Price-To-Earnings vs Fair Ratio: 600765 is good value based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).

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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