Zhejiang Jihua Group Valuation

Is 603980 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 603980 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603980 (CN¥4.39) is trading above our estimate of fair value (CN¥0.25)

Significantly Below Fair Value: 603980 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603980?

Key metric: As 603980 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603980. This is calculated by dividing 603980's market cap by their current revenue.
What is 603980's PS Ratio?
PS Ratio	1.9x
Sales	CN¥1.57b
Market Cap	CN¥2.90b

603980 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	1x
Enterprise Value/EBITDA	11.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 603980's PS Ratio compare to its peers?

The above table shows the PS ratio for 603980 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	3.6x
002476 Shandong Polymer Biochemicals	6.1x	n/a	CN¥2.7b
300437 Henan Qingshuiyuan TechnologyLtd	2.8x	n/a	CN¥2.6b
301212 Zhejiang Realsun ChemicalLtd	4.6x	n/a	CN¥2.6b
603020 Apple Flavor & Fragrance GroupLtd	1.1x	n/a	CN¥2.9b
603980 Zhejiang Jihua Group	1.9x	n/a	CN¥2.9b

Price-To-Sales vs Peers: 603980 is good value based on its Price-To-Sales Ratio (1.9x) compared to the peer average (3.7x).

Price to Sales Ratio vs Industry

How does 603980's PS Ratio compare vs other companies in the CN Chemicals Industry?

26 Companies	Price / Sales	Estimated Growth	Market Cap
600346 Hengli PetrochemicalLtd	0.4x	4.3%	US$14.60b
002493 Rongsheng Petrochemical	0.3x	9.3%	US$13.33b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.21b
601233 Tongkun Group	0.3x	4.6%	US$3.97b

26 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 603980 is good value based on its Price-To-Sales Ratio (1.9x) compared to the CN Chemicals industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 603980'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.

603980 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.9x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 603980'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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