Daqian Ecology&Environment Group Co.,Ltd.

SHSE:603955 Stock Report

Market Cap: CN¥4.3b

Daqian Ecology&Environment GroupLtd Valuation

Is 603955 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 603955 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603955 (CN¥32) is trading below our estimate of fair value (CN¥95.25)

Significantly Below Fair Value: 603955 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603955?

Key metric: As 603955 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603955. This is calculated by dividing 603955's market cap by their current revenue.
What is 603955's PS Ratio?
PS Ratio40x
SalesCN¥108.46m
Market CapCN¥4.34b

Price to Sales Ratio vs Peers

How does 603955's PS Ratio compare to its peers?

The above table shows the PS ratio for 603955 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average27.6x
000010 Shenzhen Ecobeauty
7.5xn/aCN¥3.1b
000711 Kingland TechnologyLtd
44xn/aCN¥5.0b
603359 Dongzhu Ecological Environment Protection
4.8xn/aCN¥2.7b
301259 Hunan Airbluer Environmental Protection Technology
54xn/aCN¥7.7b
603955 Daqian Ecology&Environment GroupLtd
40xn/aCN¥4.3b

Price-To-Sales vs Peers: 603955 is expensive based on its Price-To-Sales Ratio (40x) compared to the peer average (27.6x).


Price to Sales Ratio vs Industry

How does 603955's PS Ratio compare vs other companies in the CN Commercial Services Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
002183 Eternal Asia Supply Chain Management
0.2xn/aUS$1.81b
603661 Henglin Home FurnishingsLtd
0.4x18.6%US$625.97m
002301 Shenzhen Comix Group
0.4x16.9%US$592.31m
No more companies available in this PS range
603955 40.0xIndustry Avg. 3.2xNo. of Companies13PS0246810+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 603955 is expensive based on its Price-To-Sales Ratio (40x) compared to the CN Commercial Services industry average (3.2x).


Price to Sales Ratio vs Fair Ratio

What is 603955'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.

603955 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio40x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 603955'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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