Inner Mongolia Yili Industrial Group Valuation

Q: What is the Fair Price of 600887 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600887 (CN¥28.8) is trading below our estimate of [[fair value]] (CN¥38.49)

Is 600887 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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 600887 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600887 (CN¥28.8) is trading below our estimate of fair value (CN¥38.49)

Significantly Below Fair Value: 600887 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600887?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 600887. This is calculated by dividing 600887's market cap by their current preferred multiple.
What is 600887's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	CN¥181.49b

600887 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	1.6x
Enterprise Value/EBITDA	12.9x
PEG Ratio	6.6x

Price to Earnings Ratio vs Peers

How does 600887's PE Ratio compare to its peers?

The above table shows the PE ratio for 600887 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	35.7x
300999 Yihai Kerry Arawana Holdings	60x	22.3%	CN¥172.6b
603288 Foshan Haitian Flavouring and Food	37.8x	10.2%	CN¥220.4b
000895 Henan Shuanghui Investment & DevelopmentLtd	19x	9.5%	CN¥93.3b
002311 Guangdong Haid Group	26x	23.2%	CN¥82.6b
600887 Inner Mongolia Yili Industrial Group	14.3x	2.0%	CN¥182.7b

Price-To-Earnings vs Peers: 600887 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (35.7x).

Price to Earnings Ratio vs Industry

How does 600887's PE Ratio compare vs other companies in the CN Food Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	32.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	32.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: 600887 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the CN Food industry average (29.2x).

Price to Earnings Ratio vs Fair Ratio

What is 600887'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.

600887 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.3x
Fair PE Ratio	21x

Price-To-Earnings vs Fair Ratio: 600887 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).

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 600887 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥28.80	CN¥35.15 +22.1%	5.8%	CN¥40.00	CN¥32.00	n/a	23
Apr ’25	CN¥28.15	CN¥36.37 +29.2%	8.7%	CN¥46.10	CN¥32.00	n/a	24
Mar ’25	CN¥28.26	CN¥36.37 +28.7%	8.7%	CN¥46.10	CN¥32.00	n/a	24
Feb ’25	CN¥26.96	CN¥36.24 +34.4%	9.1%	CN¥46.10	CN¥30.60	n/a	24
Jan ’25	CN¥26.75	CN¥37.22 +39.1%	10.6%	CN¥48.00	CN¥30.60	n/a	24
Dec ’24	CN¥27.05	CN¥37.22 +37.6%	10.6%	CN¥48.00	CN¥30.60	n/a	24
Nov ’24	CN¥27.32	CN¥36.80 +34.7%	11.4%	CN¥48.00	CN¥30.60	n/a	24
Oct ’24	CN¥26.53	CN¥36.53 +37.7%	10.8%	CN¥46.39	CN¥29.80	n/a	24
Sep ’24	CN¥26.05	CN¥37.88 +45.4%	10.6%	CN¥46.39	CN¥29.80	n/a	24
Aug ’24	CN¥28.25	CN¥39.64 +40.3%	8.8%	CN¥50.43	CN¥34.00	n/a	24
Jul ’24	CN¥28.32	CN¥40.97 +44.7%	8.8%	CN¥50.43	CN¥34.90	n/a	24
Jun ’24	CN¥29.09	CN¥40.94 +40.7%	8.8%	CN¥50.43	CN¥34.90	n/a	25
May ’24	CN¥29.56	CN¥40.74 +37.8%	10.2%	CN¥50.43	CN¥30.00	CN¥28.61	23
Apr ’24	CN¥29.12	CN¥40.99 +40.8%	10.3%	CN¥50.43	CN¥30.00	CN¥28.15	22
Mar ’24	CN¥31.12	CN¥41.36 +32.9%	10.3%	CN¥50.43	CN¥30.00	CN¥28.26	23
Feb ’24	CN¥32.58	CN¥41.06 +26.0%	12.9%	CN¥51.00	CN¥30.00	CN¥26.96	23
Jan ’24	CN¥31.00	CN¥41.02 +32.3%	15.0%	CN¥56.00	CN¥30.00	CN¥26.75	23
Dec ’23	CN¥29.91	CN¥41.39 +38.4%	15.2%	CN¥56.00	CN¥30.00	CN¥27.05	24
Nov ’23	CN¥26.54	CN¥42.13 +58.7%	15.8%	CN¥56.00	CN¥30.00	CN¥27.32	24
Oct ’23	CN¥32.98	CN¥48.23 +46.2%	7.7%	CN¥56.00	CN¥40.60	CN¥26.53	23
Sep ’23	CN¥34.55	CN¥48.65 +40.8%	8.1%	CN¥58.00	CN¥40.60	CN¥26.05	22
Aug ’23	CN¥35.84	CN¥50.66 +41.4%	9.1%	CN¥59.59	CN¥40.60	CN¥28.25	22
Jul ’23	CN¥38.44	CN¥51.22 +33.3%	8.7%	CN¥59.59	CN¥40.60	CN¥28.32	23
Jun ’23	CN¥36.60	CN¥51.13 +39.7%	8.6%	CN¥59.59	CN¥40.60	CN¥29.09	23
May ’23	CN¥38.47	CN¥51.13 +32.9%	8.3%	CN¥59.59	CN¥40.60	CN¥29.56	23

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.