Long Yuan Construction Group Co., Ltd.

XSSC:600491 Stock Report

Market Cap: CN¥5.9b

Long Yuan Construction Group Valuation

Is 600491 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 600491 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600491 (CN¥3.87) is trading below our estimate of fair value (CN¥54.71)

Significantly Below Fair Value: 600491 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600491?

Key metric: As 600491 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600491. This is calculated by dividing 600491's market cap by their current revenue.
What is 600491's PS Ratio?
PS Ratio0.7x
SalesCN¥8.66b
Market CapCN¥5.92b

Price to Sales Ratio vs Peers

How does 600491's PS Ratio compare to its peers?

The above table shows the PS ratio for 600491 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
300197 CECEP Techand Ecology&EnvironmentLtd
8.4xn/aCN¥7.2b
002717 LingNan Eco&Culture-TourismLtd
4.2xn/aCN¥5.4b
600939 Chongqing Construction Engineering Group
0.2xn/aCN¥6.4b
002542 China Zhonghua Geotechnical Engineering Group
3.6xn/aCN¥7.6b
600491 Long Yuan Construction Group
0.7xn/aCN¥5.9b

Price-To-Sales vs Peers: 600491 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (4.1x).


Price to Sales Ratio vs Industry

How does 600491's PS Ratio compare vs other companies in the CN Construction Industry?

17 CompaniesPrice / SalesEstimated GrowthMarket Cap
601668 China State Construction Engineering
0.1x5.9%US$34.04b
601390 China Railway Group
0.1x4.8%US$20.09b
601186 China Railway Construction
0.1x2.4%US$15.92b
601669 Power Construction Corporation of China
0.2x9.1%US$13.16b
600491 0.7xIndustry Avg. 1.3xNo. of Companies17PS01.22.43.64.86+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 600491 is good value based on its Price-To-Sales Ratio (0.7x) compared to the CN Construction industry average (1.3x).


Price to Sales Ratio vs Fair Ratio

What is 600491'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.

600491 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 600491'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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