Is It Time To Consider Buying Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (SZSE:002304)?

Today we're going to take a look at the well-established Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (SZSE:002304). The company's stock saw significant share price movement during recent months on the SZSE, rising to highs of CN¥106 and falling to the lows of CN¥90.27. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Jiangsu Yanghe Brewery's current trading price of CN¥90.27 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Jiangsu Yanghe Brewery’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Jiangsu Yanghe Brewery

What Is Jiangsu Yanghe Brewery Worth?

Good news, investors! Jiangsu Yanghe Brewery is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Jiangsu Yanghe Brewery’s ratio of 13.2x is below its peer average of 26.29x, which indicates the stock is trading at a lower price compared to the Beverage industry. However, given that Jiangsu Yanghe Brewery’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Jiangsu Yanghe Brewery generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Jiangsu Yanghe Brewery's earnings over the next few years are expected to increase by 36%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since 002304 is currently below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on 002304 for a while, now might be the time to enter the stock. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 002304. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

It can be quite valuable to consider what analysts expect for Jiangsu Yanghe Brewery from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Jiangsu Yanghe Brewery, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.