Daodaoquan Grain and OilLtd Valuation

Q: What is the Fair Price of 002852 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002852 (CN¥7.88) is trading below our estimate of [[fair value]] (CN¥280.7)

Is 002852 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-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 002852 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002852 (CN¥7.88) is trading below our estimate of fair value (CN¥280.7)

Significantly Below Fair Value: 002852 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002852?

Key metric: As 002852 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 002852. This is calculated by dividing 002852's market cap by their current revenue.
What is 002852's PS Ratio?
PS Ratio	0.5x
Sales	CN¥5.95b
Market Cap	CN¥2.71b

002852 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	0.6x
Enterprise Value/EBITDA	12.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 002852's PS Ratio compare to its peers?

The above table shows the PS ratio for 002852 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	7.8x
600419 Xinjiang Tianrun Dairy	1x	8.4%	CN¥2.8b
300189 Hainan Shennong Seed Industry Technology	21.2x	n/a	CN¥3.7b
600540 Xinjiang Sayram Modern Agriculture	2.3x	n/a	CN¥2.4b
600371 Wanxiang Doneed	6.9x	n/a	CN¥2.6b
002852 Daodaoquan Grain and OilLtd	0.5x	n/a	CN¥2.7b

Price-To-Sales vs Peers: 002852 is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (7.8x).

Price to Sales Ratio vs Industry

How does 002852's PS Ratio compare vs other companies in the CN Food Industry?

5 Companies	Price / Sales	Estimated Growth	Market Cap
603609 Wellhope Foods	0.2x	9.6%	US$1.01b
600073 Shanghai Bright Meat Group	0.3x	n/a	US$879.77m
301116 Jiangsu Yike Food GroupLtd	0.2x	20.1%	US$694.53m
603363 Fujian Aonong Biological Technology Group Incorporation	0.3x	n/a	US$429.85m

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 002852 is good value based on its Price-To-Sales Ratio (0.5x) compared to the CN Food industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 002852'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.

002852 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 002852's Price-To-Sales Fair Ratio for valuation analysis.

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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