Xinyu Iron & Steel Co., Ltd

SHSE:600782 Stock Report

Market Cap: CN¥12.1b

Xinyu Iron & Steel Valuation

Is 600782 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-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 600782 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600782 (CN¥3.85) is trading above our estimate of fair value (CN¥1.54)

Significantly Below Fair Value: 600782 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600782?

Key metric: As 600782 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600782. This is calculated by dividing 600782's market cap by their current revenue.
What is 600782's PS Ratio?
PS Ratio0.3x
SalesCN¥40.04b
Market CapCN¥12.11b

Price to Sales Ratio vs Peers

How does 600782's PS Ratio compare to its peers?

The above table shows the PS ratio for 600782 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
000761 Bengang Steel Plates
0.3xn/aCN¥13.3b
600740 Shanxi Coking
1.4x4.8%CN¥10.7b
600307 Gansu Jiu Steel Group Hongxing Iron & SteelLtd
0.3xn/aCN¥10.3b
001203 Dazhong Mining
3.4x16.9%CN¥14.0b
600782 Xinyu Iron & Steel
0.3x15.9%CN¥12.1b

Price-To-Sales vs Peers: 600782 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.3x).


Price to Sales Ratio vs Industry

How does 600782's PS Ratio compare vs other companies in the CN Metals and Mining Industry?

25 CompaniesPrice / SalesEstimated GrowthMarket Cap
000630 Tongling Nonferrous Metals GroupLtd
0.3x12.9%US$5.75b
000932 Hunan Valin Steel
0.2x3.1%US$4.15b
000878 Yunnan CopperLtd
0.2x8.9%US$3.45b
000959 Beijing Shougang
0.2x-0.2%US$3.39b
600782 0.3xIndustry Avg. 1.4xNo. of Companies26PS01.22.43.64.86+
25 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 600782 is good value based on its Price-To-Sales Ratio (0.3x) compared to the CN Metals and Mining industry average (1.4x).


Price to Sales Ratio vs Fair Ratio

What is 600782'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.

600782 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: 600782 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).


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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