China Zhonghua Geotechnical Engineering Group Valuation

Q: What is the Fair Price of 002542 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002542 (CN¥4.77) is trading above our estimate of [[fair value]] (CN¥1.28)

Is 002542 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 002542 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002542 (CN¥4.77) is trading above our estimate of fair value (CN¥1.28)

Significantly Below Fair Value: 002542 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002542?

Key metric: As 002542 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 002542. This is calculated by dividing 002542's market cap by their current revenue.
What is 002542's PS Ratio?
PS Ratio	4.1x
Sales	CN¥2.12b
Market Cap	CN¥8.62b

002542 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	5.1x
Enterprise Value/EBITDA	-24.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 002542's PS Ratio compare to its peers?

The above table shows the PS ratio for 002542 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.2x
300197 CECEP Techand Ecology&EnvironmentLtd	8x	n/a	CN¥6.9b
600326 Tibet Tianlu	2.8x	24.5%	CN¥9.5b
600491 Long Yuan Construction Group	0.7x	n/a	CN¥6.1b
002941 Xinjiang Communications Construction Group	1.2x	n/a	CN¥7.9b
002542 China Zhonghua Geotechnical Engineering Group	4.1x	n/a	CN¥8.6b

Price-To-Sales vs Peers: 002542 is expensive based on its Price-To-Sales Ratio (4.1x) compared to the peer average (3.2x).

Price to Sales Ratio vs Industry

How does 002542's PS Ratio compare vs other companies in the CN Construction Industry?

18 Companies	Price / Sales	Estimated Growth	Market Cap
601668 China State Construction Engineering	0.1x	5.9%	US$34.17b
601390 China Railway Group	0.1x	4.8%	US$20.35b
601186 China Railway Construction	0.1x	2.4%	US$16.01b
601669 Power Construction Corporation of China	0.2x	9.1%	US$13.27b

18 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 002542 is expensive based on its Price-To-Sales Ratio (4.1x) compared to the CN Construction industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is 002542's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

002542 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 002542's Price-To-Sales Fair Ratio for valuation analysis.

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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