Zhejiang Communications Technology Co., Ltd.

XSEC:002061 Stock Report

Market Cap: CN¥10.9b

Zhejiang Communications Technology Valuation

Is 002061 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 002061 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002061 (CN¥4.21) is trading above our estimate of fair value (CN¥2.17)

Significantly Below Fair Value: 002061 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002061?

Key metric: As 002061 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002061. This is calculated by dividing 002061's market cap by their current earnings.
What is 002061's PE Ratio?
PE Ratio7.7x
EarningsCN¥1.43b
Market CapCN¥10.94b

Price to Earnings Ratio vs Peers

How does 002061's PE Ratio compare to its peers?

The above table shows the PE ratio for 002061 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.9x
600133 Wuhan East Lake High Technology Group
10.7xn/aCN¥11.4b
300284 JSTI Group
53.8x15.2%CN¥14.1b
002051 China CAMC Engineering
31x15.4%CN¥10.7b
000498 Shandong Hi-Speed Road&Bridge Group
4.1x8.0%CN¥9.5b
002061 Zhejiang Communications Technology
7.7x13.1%CN¥10.9b

Price-To-Earnings vs Peers: 002061 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (25.5x).

Price to Earnings Ratio vs Industry

How does 002061's PE Ratio compare vs other companies in the CN Construction Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
601668 China State Construction Engineering
4.9x6.8%US$33.85b
600248 Shaanxi Construction Engineering Group
4.2x12.6%US$2.29b
000498 Shandong Hi-Speed Road&Bridge Group
4.1x8.0%US$1.32b
002482 Shenzhen Grandland Group
2.5xn/aUS$958.29m
002061 7.7xIndustry Avg. 23.7xNo. of Companies16PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 002061 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the CN Construction industry average (23.5x).

Price to Earnings Ratio vs Fair Ratio

What is 002061'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.

002061 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: 002061 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).

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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