Warom Technology Incorporated Company

SHSE:603855 Stock Report

Market Cap: CN¥6.7b

Warom Technology Valuation

Is 603855 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 603855 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603855 (CN¥20.15) is trading below our estimate of fair value (CN¥35.49)

Significantly Below Fair Value: 603855 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603855?

Key metric: As 603855 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603855. This is calculated by dividing 603855's market cap by their current earnings.
What is 603855's PE Ratio?
PE Ratio13.9x
EarningsCN¥481.05m
Market CapCN¥6.67b

Price to Earnings Ratio vs Peers

How does 603855's PE Ratio compare to its peers?

The above table shows the PE ratio for 603855 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average69.6x
688776 Guoguang ElectricLtd.Chengdu
96.5xn/aCN¥7.6b
000541 Foshan Electrical and LightingLtd
29.3x19.3%CN¥7.9b
301517 Shaanxi Huada Science TechnologyLtd
122.3x33.1%CN¥6.3b
605222 Shanghai QiFan Cable
30.1x37.0%CN¥6.9b
603855 Warom Technology
13.9x17.7%CN¥6.7b

Price-To-Earnings vs Peers: 603855 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (69.6x).

Price to Earnings Ratio vs Industry

How does 603855's PE Ratio compare vs other companies in the CN Electrical Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
300023 Bode Energy Equipment
3.6xn/aUS$51.42m
No more companies available in this PE range
603855 13.9xIndustry Avg. 35.7xNo. of Companies36PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603855 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the CN Electrical industry average (36x).

Price to Earnings Ratio vs Fair Ratio

What is 603855'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.

603855 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: 603855 is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 603855 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥19.70
CN¥23.93
+21.5%
6.6%CN¥25.50CN¥22.36n/a2
Nov ’25CN¥20.73
CN¥25.00
+20.6%
9.4%CN¥27.64CN¥22.36n/a4
Oct ’25CN¥20.00
CN¥24.71
+23.5%
10.9%CN¥27.64CN¥21.19n/a4
Sep ’25CN¥17.23
CN¥24.71
+43.4%
10.9%CN¥27.64CN¥21.19n/a4
Aug ’25CN¥19.57
CN¥25.93
+32.5%
6.9%CN¥27.64CN¥23.00n/a4
Jul ’25CN¥21.89
CN¥25.93
+18.5%
6.9%CN¥27.64CN¥23.00n/a4
Jun ’25CN¥22.20
CN¥25.93
+16.8%
6.9%CN¥27.64CN¥23.00n/a4
May ’25CN¥21.75
CN¥25.93
+19.2%
6.9%CN¥27.64CN¥23.00n/a4
Apr ’25CN¥23.20
CN¥24.82
+7.0%
6.7%CN¥27.00CN¥23.00n/a3
Mar ’25CN¥18.81
CN¥27.86
+48.1%
12.4%CN¥30.59CN¥23.00n/a3
Feb ’25CN¥15.95
CN¥27.86
+74.7%
12.4%CN¥30.59CN¥23.00n/a3
Jan ’25CN¥19.96
CN¥27.86
+39.6%
12.4%CN¥30.59CN¥23.00n/a3
Dec ’24CN¥19.48
CN¥27.86
+43.0%
12.4%CN¥30.59CN¥23.00n/a3
Nov ’24CN¥17.16
CN¥27.86
+62.4%
12.4%CN¥30.59CN¥23.00CN¥20.733
Oct ’24CN¥21.80
CN¥29.86
+37.0%
2.2%CN¥30.59CN¥29.00CN¥20.003
Sep ’24CN¥22.47
CN¥29.86
+32.9%
2.2%CN¥30.59CN¥29.00CN¥17.233
Aug ’24CN¥25.16
CN¥32.42
+28.9%
1.3%CN¥33.00CN¥32.00CN¥19.573
Jul ’24CN¥26.60
CN¥32.42
+21.9%
1.3%CN¥33.00CN¥32.00CN¥21.893
Jun ’24CN¥27.29
CN¥32.42
+18.8%
1.3%CN¥33.00CN¥32.00CN¥22.203
May ’24CN¥27.26
CN¥32.42
+18.9%
1.3%CN¥33.00CN¥32.00CN¥21.753
Apr ’24CN¥28.49
CN¥30.63
+7.5%
5.3%CN¥32.26CN¥29.00CN¥23.202
Mar ’24CN¥25.87
CN¥30.34
+17.3%
4.6%CN¥32.26CN¥29.00CN¥18.813
Feb ’24CN¥24.87
CN¥30.34
+22.0%
4.6%CN¥32.26CN¥29.00CN¥15.953
Jan ’24CN¥23.10
CN¥30.34
+31.3%
4.6%CN¥32.26CN¥29.00CN¥19.963
Dec ’23CN¥24.71
CN¥28.32
+14.6%
5.1%CN¥29.76CN¥26.88CN¥19.482
Nov ’23CN¥22.20
CN¥28.32
+27.6%
5.1%CN¥29.76CN¥26.88CN¥17.162

Analyst Forecast: Target price is less than 20% higher than the current share price.

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