Shenzhen Honor Electronic Co., Ltd.

SZSE:300870 Stock Report

Market Cap: CN¥7.2b

Shenzhen Honor Electronic Valuation

Is 300870 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 300870 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300870 (CN¥72.48) is trading above our estimate of fair value (CN¥4.46)

Significantly Below Fair Value: 300870 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300870?

Key metric: As 300870 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 300870. This is calculated by dividing 300870's market cap by their current earnings.
What is 300870's PE Ratio?
PE Ratio23.3x
EarningsCN¥309.43m
Market CapCN¥7.21b

Price to Earnings Ratio vs Peers

How does 300870's PE Ratio compare to its peers?

The above table shows the PE ratio for 300870 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.2x
600268 Guodian Nanjing Automation
25.4xn/aCN¥7.0b
605222 Shanghai QiFan Cable
29.4x37.0%CN¥6.7b
002533 Gold cup Electric ApparatusLtd
12.8x14.4%CN¥7.6b
605196 Hebei Huatong Wires and Cables Group
17.3x27.0%CN¥6.1b
300870 Shenzhen Honor Electronic
23.3x14.8%CN¥7.2b

Price-To-Earnings vs Peers: 300870 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (21.2x).


Price to Earnings Ratio vs Industry

How does 300870'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
300870 23.3xIndustry Avg. 36.0xNo. of Companies35PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 300870 is good value based on its Price-To-Earnings Ratio (23.3x) compared to the CN Electrical industry average (36x).


Price to Earnings Ratio vs Fair Ratio

What is 300870'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.

300870 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio21.3x

Price-To-Earnings vs Fair Ratio: 300870 is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).


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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