Zheshang Securities Co., Ltd.

SHSE:601878 Stock Report

Market Cap: CN¥54.6b

Zheshang Securities Valuation

Is 601878 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 601878 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601878 (CN¥12.14) is trading above our estimate of fair value (CN¥4.88)

Significantly Below Fair Value: 601878 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601878?

Key metric: As 601878 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601878. This is calculated by dividing 601878's market cap by their current earnings.
What is 601878's PE Ratio?
PE Ratio32.4x
EarningsCN¥1.69b
Market CapCN¥54.63b

Price to Earnings Ratio vs Peers

How does 601878's PE Ratio compare to its peers?

The above table shows the PE ratio for 601878 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average59.7x
600061 SDIC CapitalLtd
23.9x15.6%CN¥48.0b
600918 Zhongtai Securities
114.1x35.8%CN¥46.7b
601136 Capital Securities
63.1xn/aCN¥62.5b
601059 Cinda Securities
37.7xn/aCN¥47.7b
601878 Zheshang Securities
32.4x13.5%CN¥54.6b

Price-To-Earnings vs Peers: 601878 is good value based on its Price-To-Earnings Ratio (32.4x) compared to the peer average (59.7x).

Price to Earnings Ratio vs Industry

How does 601878's PE Ratio compare vs other companies in the CN Capital Markets Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
601878 32.4xIndustry Avg. 32.0xNo. of Companies11PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 601878 is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the CN Capital Markets industry average (32x).

Price to Earnings Ratio vs Fair Ratio

What is 601878'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.

601878 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.4x
Fair PE Ratio32.4x

Price-To-Earnings vs Fair Ratio: 601878 is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the estimated Fair Price-To-Earnings Ratio (32.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 601878 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥12.14
CN¥13.51
+11.3%
9.0%CN¥14.73CN¥12.30n/a2
Nov ’25CN¥12.77
CN¥12.34
-3.4%
2.9%CN¥12.80CN¥11.92n/a3
Oct ’25CN¥14.41
CN¥12.34
-14.4%
2.9%CN¥12.80CN¥11.92n/a3
Sep ’25CN¥11.19
CN¥12.34
+10.3%
2.9%CN¥12.80CN¥11.92n/a3
Aug ’25CN¥11.47
CN¥12.21
+6.5%
2.4%CN¥12.50CN¥11.92n/a2
Jul ’25CN¥10.82
CN¥12.21
+12.8%
2.4%CN¥12.50CN¥11.92n/a2
Jun ’25CN¥10.97
CN¥12.21
+11.3%
2.4%CN¥12.50CN¥11.92n/a2
Mar ’25CN¥10.30
CN¥12.62
+22.5%
1.0%CN¥12.74CN¥12.50n/a2
Feb ’25CN¥9.65
CN¥12.62
+30.8%
1.0%CN¥12.74CN¥12.50n/a2
Jan ’25CN¥10.43
CN¥12.62
+21.0%
1.0%CN¥12.74CN¥12.50n/a2
Dec ’24CN¥10.57
CN¥12.62
+19.4%
1.0%CN¥12.74CN¥12.50n/a2
Nov ’24CN¥10.05
CN¥12.62
+25.6%
1.0%CN¥12.74CN¥12.50CN¥12.772
Oct ’24CN¥10.08
CN¥12.62
+25.2%
1.0%CN¥12.74CN¥12.50CN¥14.412
Sep ’24CN¥10.41
CN¥12.74
+22.4%
1.9%CN¥12.98CN¥12.50CN¥11.192
Aug ’24CN¥10.82
CN¥12.74
+17.7%
1.9%CN¥12.98CN¥12.50CN¥11.472
Jul ’24CN¥9.88
CN¥12.74
+28.9%
1.9%CN¥12.98CN¥12.50CN¥10.822
Jun ’24CN¥10.01
CN¥12.74
+27.3%
1.9%CN¥12.98CN¥12.50CN¥10.972
May ’24CN¥10.22
CN¥12.74
+24.6%
1.9%CN¥12.98CN¥12.50CN¥11.302
Mar ’24CN¥10.41
CN¥12.24
+17.6%
2.1%CN¥12.50CN¥11.99CN¥10.302
Feb ’24CN¥10.91
CN¥12.24
+12.2%
2.1%CN¥12.50CN¥11.99CN¥9.652

Analyst Forecast: Target price is less than 20% higher than the current share price.

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