Wuxi Huaguang Environment & Energy GroupLtd Valuation

Q: What is the Fair Price of 600475 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600475 (CN¥9.43) is trading below our estimate of [[fair value]] (CN¥42.65)

Is 600475 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 600475 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600475 (CN¥9.43) is trading below our estimate of fair value (CN¥42.65)

Significantly Below Fair Value: 600475 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600475?

Key metric: As 600475 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600475. This is calculated by dividing 600475's market cap by their current earnings.
What is 600475's PE Ratio?
PE Ratio	12.5x
Earnings	CN¥707.32m
Market Cap	CN¥8.86b

600475 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	1.7x
Enterprise Value/EBITDA	13.8x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 600475's PE Ratio compare to its peers?

The above table shows the PE ratio for 600475 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	46.4x
002101 Guangdong Hongtu Technology (holdings)Ltd	22.9x	22.7%	CN¥8.7b
300278 Huachangda Intelligent Equipment GroupLtd	99.3x	n/a	CN¥8.6b
603308 Anhui Yingliu Electromechanical	33.2x	29.9%	CN¥9.5b
300257 Kaishan Group	30.4x	n/a	CN¥9.3b
600475 Wuxi Huaguang Environment & Energy GroupLtd	12.5x	15.6%	CN¥8.9b

Price-To-Earnings vs Peers: 600475 is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (46.4x).

Price to Earnings Ratio vs Industry

How does 600475'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$396.73m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 600475 is good value based on its Price-To-Earnings Ratio (12.5x) compared to the CN Machinery industry average (34.4x).

Price to Earnings Ratio vs Fair Ratio

What is 600475'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.

600475 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.5x
Fair PE Ratio	18.9x

Price-To-Earnings vs Fair Ratio: 600475 is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

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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