Red Avenue New Materials Group Co., Ltd.

SHSE:603650 Stock Report

Market Cap: CN¥20.5b

Red Avenue New Materials Group Valuation

Is 603650 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 603650 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603650 (CN¥34.2) is trading above our estimate of fair value (CN¥11.58)

Significantly Below Fair Value: 603650 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603650?

Key metric: As 603650 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603650. This is calculated by dividing 603650's market cap by their current earnings.
What is 603650's PE Ratio?
PE Ratio41.4x
EarningsCN¥495.18m
Market CapCN¥20.49b

Price to Earnings Ratio vs Peers

How does 603650's PE Ratio compare to its peers?

The above table shows the PE ratio for 603650 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.1x
300390 Canmax Technologies
30x35.9%CN¥22.8b
600143 Kingfa Sci. & Tech
43.2x51.2%CN¥22.2b
002080 Sinoma Science & TechnologyLtd
19.4x31.1%CN¥21.8b
000683 Inner Mongolia Yuan Xing Energy
12x23.7%CN¥20.4b
603650 Red Avenue New Materials Group
41.4x21.3%CN¥20.5b

Price-To-Earnings vs Peers: 603650 is expensive based on its Price-To-Earnings Ratio (41.4x) compared to the peer average (26.1x).

Price to Earnings Ratio vs Industry

How does 603650's PE Ratio compare vs other companies in the CN Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
603650 41.4xIndustry Avg. 35.2xNo. of Companies41PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603650 is expensive based on its Price-To-Earnings Ratio (41.4x) compared to the CN Chemicals industry average (35.2x).

Price to Earnings Ratio vs Fair Ratio

What is 603650'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.

603650 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41.4x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: 603650 is expensive based on its Price-To-Earnings Ratio (41.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

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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