Hangzhou FlariantLtd Valuation

Q: What is the Fair Price of 605566 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

605566 (CN¥18.97) is trading below our estimate of [[fair value]] (CN¥295.91)

Is 605566 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 605566 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 605566 (CN¥18.97) is trading below our estimate of fair value (CN¥295.91)

Significantly Below Fair Value: 605566 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 605566?

Key metric: As 605566 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 605566. This is calculated by dividing 605566's market cap by their current revenue.
What is 605566's PS Ratio?
PS Ratio	2.6x
Sales	CN¥970.72m
Market Cap	CN¥2.53b

605566 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	1.6x
Enterprise Value/EBITDA	40.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 605566's PS Ratio compare to its peers?

The above table shows the PS ratio for 605566 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	3.5x
300637 Zhejiang Yangfan New Materials	3.9x	n/a	CN¥2.6b
301212 Zhejiang Realsun ChemicalLtd	4.4x	n/a	CN¥2.5b
301209 Longkou Union Chemical	4.5x	n/a	CN¥2.3b
603020 Apple Flavor & Fragrance GroupLtd	1.1x	n/a	CN¥3.0b
605566 Hangzhou FlariantLtd	2.6x	n/a	CN¥2.5b

Price-To-Sales vs Peers: 605566 is good value based on its Price-To-Sales Ratio (2.6x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does 605566's PS Ratio compare vs other companies in the CN Chemicals Industry?

23 Companies	Price / Sales	Estimated Growth	Market Cap
600346 Hengli PetrochemicalLtd	0.4x	4.3%	US$13.74b
002493 Rongsheng Petrochemical	0.3x	9.3%	US$12.59b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.22b
601233 Tongkun Group	0.3x	4.6%	US$3.73b

23 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 605566 is expensive based on its Price-To-Sales Ratio (2.6x) compared to the CN Chemicals industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 605566'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.

605566 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 605566'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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