Shanghai Zhenhua Heavy Industries Valuation
Is 600320 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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 600320 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 600320 (CN¥4.02) is trading below our estimate of fair value (CN¥26.42)
Significantly Below Fair Value: 600320 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 600320?
Key metric: As 600320 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is 600320's PE Ratio? | |
|---|---|
| PE Ratio | 33.4x |
| Earnings | CN¥633.22m |
| Market Cap | CN¥16.68b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.2x |
| Enterprise Value/EBITDA | 15.8x |
| PEG Ratio | 0.9x |
Price to Earnings Ratio vs Peers
How does 600320's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 10.9x | ||
000680 Shantui Construction Machinery | 16.2x | 21.3% | CN¥15.8b |
600761 Anhui HeliLtd | 10.8x | 17.5% | CN¥15.2b |
601717 Zhengzhou Coal Mining Machinery Group | 5.7x | 11.6% | CN¥21.1b |
603298 Hangcha Group | 11.1x | 12.2% | CN¥22.0b |
600320 Shanghai Zhenhua Heavy Industries | 33.4x | 36.5% | CN¥16.7b |
Price-To-Earnings vs Peers: 600320 is expensive based on its Price-To-Earnings Ratio (33.4x) compared to the peer average (11.1x).
Price to Earnings Ratio vs Industry
How does 600320'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$396.87m |
| 1 Company | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: 600320 is good value based on its Price-To-Earnings Ratio (33.4x) compared to the CN Machinery industry average (34.4x).
Price to Earnings Ratio vs Fair Ratio
What is 600320'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 33.4x |
| Fair PE Ratio | 30.8x |
Price-To-Earnings vs Fair Ratio: 600320 is expensive based on its Price-To-Earnings Ratio (33.4x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).
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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