PNC Process Systems Valuation

Is 603690 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 603690 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603690 (CN¥26.07) is trading above our estimate of fair value (CN¥3.35)

Significantly Below Fair Value: 603690 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603690?

Key metric: As 603690 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603690. This is calculated by dividing 603690's market cap by their current earnings.
What is 603690's PE Ratio?
PE Ratio	26.7x
Earnings	CN¥374.06m
Market Cap	CN¥9.99b

603690 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	4.2x
Enterprise Value/EBITDA	29x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does 603690's PE Ratio compare to its peers?

The above table shows the PE ratio for 603690 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	20.9x
002204 Dalian Huarui Heavy Industry Group	20.9x	n/a	CN¥9.3b
002158 Shanghai Hanbell Precise Machinery	10.7x	9.7%	CN¥9.7b
603279 Jingjin Equipment	11.5x	14.4%	CN¥10.7b
300260 Kunshan Kinglai Hygienic MaterialsLtd	40.6x	35.5%	CN¥10.8b
603690 PNC Process Systems	26.7x	31.0%	CN¥10.0b

Price-To-Earnings vs Peers: 603690 is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

How does 603690's PE Ratio compare vs other companies in the CN Machinery Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
002021 Zoje Resources Investment	4.6x	n/a	US$398.30m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 603690 is good value based on its Price-To-Earnings Ratio (26.7x) compared to the CN Machinery industry average (34.4x).

Price to Earnings Ratio vs Fair Ratio

What is 603690'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.

603690 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.7x
Fair PE Ratio	27.7x

Price-To-Earnings vs Fair Ratio: 603690 is good value based on its Price-To-Earnings Ratio (26.7x) compared to the estimated Fair Price-To-Earnings Ratio (27.7x).

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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