Dongfang Electric Valuation

Is 600875 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 600875 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600875 (CN¥15.68) is trading above our estimate of fair value (CN¥13.05)

Significantly Below Fair Value: 600875 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600875?

Key metric: As 600875 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600875. This is calculated by dividing 600875's market cap by their current earnings.
What is 600875's PE Ratio?
PE Ratio	8.6x
Earnings	CN¥3.26b
Market Cap	CN¥46.73b

600875 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	0.6x
Enterprise Value/EBITDA	12.9x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does 600875's PE Ratio compare to its peers?

The above table shows the PE ratio for 600875 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	27.5x
601179 China XD Electric	37x	26.9%	CN¥41.9b
002202 Goldwind Science&Technology	24.8x	26.1%	CN¥39.6b
688349 Sany Renewable EnergyLtd	20.7x	30.5%	CN¥34.4b
000400 XJ Electric	27.6x	25.4%	CN¥30.0b
600875 Dongfang Electric	8.6x	17.5%	CN¥50.3b

Price-To-Earnings vs Peers: 600875 is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (27.5x).

Price to Earnings Ratio vs Industry

How does 600875's PE Ratio compare vs other companies in the CN Electrical Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
300023 Bode Energy Equipment	3.6x	n/a	US$51.42m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 600875 is good value based on its Price-To-Earnings Ratio (8.6x) compared to the CN Electrical industry average (35.3x).

Price to Earnings Ratio vs Fair Ratio

What is 600875'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.

600875 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.6x
Fair PE Ratio	24.1x

Price-To-Earnings vs Fair Ratio: 600875 is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.1x).

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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