China Galaxy Securities Valuation

Q: What is the Fair Price of 601881 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

601881 (CN¥15.27) is trading below our estimate of [[fair value]] (CN¥16.86)

Is 601881 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-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 601881 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601881 (CN¥15.27) is trading below our estimate of fair value (CN¥16.86)

Significantly Below Fair Value: 601881 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601881?

Key metric: As 601881 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601881. This is calculated by dividing 601881's market cap by their current earnings.
What is 601881's PE Ratio?
PE Ratio	9.8x
Earnings	CN¥7.32b
Market Cap	CN¥134.54b

601881 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	1x

Price to Earnings Ratio vs Peers

How does 601881's PE Ratio compare to its peers?

The above table shows the PE ratio for 601881 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	44.7x
000563 Shaanxi International TrustLtd	16.5x	n/a	CN¥19.5b
000567 Hainan Haide Capital Management	23.6x	17.1%	CN¥14.5b
601688 Huatai Securities	10.5x	2.7%	CN¥149.3b
300033 Hithink RoyalFlush Information Network	128.2x	17.3%	CN¥170.4b
601881 China Galaxy Securities	9.8x	9.8%	CN¥144.6b

Price-To-Earnings vs Peers: 601881 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (45.7x).

Price to Earnings Ratio vs Industry

How does 601881's PE Ratio compare vs other companies in the CN Capital Markets Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
601878 Zheshang Securities	1.9x	13.5%	US$454.42m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 601881 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the CN Capital Markets industry average (32.1x).

Price to Earnings Ratio vs Fair Ratio

What is 601881'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.

601881 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	34.1x

Price-To-Earnings vs Fair Ratio: 601881 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (34.1x).

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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