Zhejiang Shouxiangu Pharmaceutical Co., Ltd.

SHSE:603896 Stock Report

Market Cap: CN¥4.3b

Zhejiang Shouxiangu Pharmaceutical Valuation

Is 603896 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 603896 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603896 (CN¥21.5) is trading above our estimate of fair value (CN¥8.26)

Significantly Below Fair Value: 603896 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603896?

Key metric: As 603896 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603896. This is calculated by dividing 603896's market cap by their current earnings.
What is 603896's PE Ratio?
PE Ratio18.2x
EarningsCN¥233.79m
Market CapCN¥4.26b

Price to Earnings Ratio vs Peers

How does 603896's PE Ratio compare to its peers?

The above table shows the PE ratio for 603896 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.5x
300740 SYoung Group
22.9x23.7%CN¥4.8b
301507 Hangzhou Minsheng Healthcare
51.4xn/aCN¥4.6b
001328 Dencare (Chongqing) Oral Care
33.5x17.4%CN¥5.1b
605009 Hangzhou Haoyue Personal Care
14.1x16.4%CN¥5.9b
603896 Zhejiang Shouxiangu Pharmaceutical
18.2x19.4%CN¥4.3b

Price-To-Earnings vs Peers: 603896 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (30.5x).

Price to Earnings Ratio vs Industry

How does 603896's PE Ratio compare vs other companies in the CN Personal Products Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
603896 18.2xIndustry Avg. 35.1xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603896 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the CN Personal Products industry average (35.1x).

Price to Earnings Ratio vs Fair Ratio

What is 603896'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.

603896 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.2x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: 603896 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).

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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