Shanghai Chemspec Valuation

Is 688602 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 688602 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 688602 (CN¥8) is trading below our estimate of fair value (CN¥17.1)

Significantly Below Fair Value: 688602 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688602?

Key metric: As 688602 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 688602. This is calculated by dividing 688602's market cap by their current revenue.
What is 688602's PS Ratio?
PS Ratio	5.9x
Sales	CN¥708.66m
Market Cap	CN¥4.16b

688602 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	4.4x
Enterprise Value/EBITDA	99.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 688602's PS Ratio compare to its peers?

The above table shows the PS ratio for 688602 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	4.8x
603155 Xinyaqiang Silicon ChemistryLtd	6.5x	n/a	CN¥4.3b
300537 Jiangsu Kuangshun Photosensitivity New-Material Stock	8.1x	26.2%	CN¥4.0b
603062 MEGA P&C Advanced Materials (Shanghai)	2.2x	9.2%	CN¥3.9b
603065 Suqian UnitechLtd	2.5x	n/a	CN¥3.5b
688602 Shanghai Chemspec	5.9x	n/a	CN¥4.2b

Price-To-Sales vs Peers: 688602 is expensive based on its Price-To-Sales Ratio (5.9x) compared to the peer average (4.8x).

Price to Sales Ratio vs Industry

How does 688602's PS Ratio compare vs other companies in the CN Chemicals Industry?

24 Companies	Price / Sales	Estimated Growth	Market Cap
600346 Hengli PetrochemicalLtd	0.4x	4.3%	US$13.70b
002493 Rongsheng Petrochemical	0.3x	9.3%	US$12.56b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.20b
601233 Tongkun Group	0.3x	4.6%	US$3.72b

24 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 688602 is expensive based on its Price-To-Sales Ratio (5.9x) compared to the CN Chemicals industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 688602'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.

688602 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	5.9x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 688602'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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