AVIC Industry-Finance Holdings Valuation

Q: What is the Fair Price of 600705 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600705 (CN¥4.25) is trading above our estimate of [[fair value]] (CN¥1.17)

Is 600705 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-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 600705 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600705 (CN¥4.25) is trading above our estimate of fair value (CN¥1.17)

Significantly Below Fair Value: 600705 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600705?

Key metric: As 600705 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600705. This is calculated by dividing 600705's market cap by their current revenue.
What is 600705's PS Ratio?
PS Ratio	3.4x
Sales	CN¥11.07b
Market Cap	CN¥37.51b

600705 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	3.8x

Price to Sales Ratio vs Peers

How does 600705's PS Ratio compare to its peers?

The above table shows the PS ratio for 600705 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	7.3x
600643 Shanghai Aj GroupLtd	3.6x	n/a	CN¥9.2b
600901 Jiangsu Financial Leasing	6.7x	12.8%	CN¥29.7b
000783 Changjiang Securities	6x	8.5%	CN¥38.9b
002797 First Capital Securities	13x	6.6%	CN¥38.4b
600705 AVIC Industry-Finance Holdings	3.4x	16.8%	CN¥37.5b

Price-To-Sales vs Peers: 600705 is good value based on its Price-To-Sales Ratio (3.4x) compared to the peer average (7.3x).

Price to Sales Ratio vs Industry

How does 600705's PS Ratio compare vs other companies in the Asian Diversified Financial Industry?

67 Companies	Price / Sales	Estimated Growth	Market Cap

67 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 600705 is good value based on its Price-To-Sales Ratio (3.4x) compared to the Asian Diversified Financial industry average (4.4x).

Price to Sales Ratio vs Fair Ratio

What is 600705'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.

600705 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.4x
Fair PS Ratio	5.2x

Price-To-Sales vs Fair Ratio: 600705 is good value based on its Price-To-Sales Ratio (3.4x) compared to the estimated Fair Price-To-Sales Ratio (5.2x).

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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