GEM Valuation

Is 2340 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-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 2340 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002340 (CN¥5.92) is trading below our estimate of fair value (CN¥10.21)

Significantly Below Fair Value: 002340 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2340?

Other financial metrics that can be useful for relative valuation.

2340 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/Revenue1.7x
Enterprise Value/EBITDA17.5x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does 2340's PE Ratio compare to its peers?

The above table shows the PE ratio for 2340 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average53.6x
000831 China Rare Earth Resources And Technology
153x55.1%CN¥26.1b
603979 JCHX Mining ManagementLtd
36.8x41.2%CN¥31.5b
600549 Xiamen TungstenLtd
17.2x23.0%CN¥27.2b
000933 Henan Shenhuo Coal Industary and Electricity Power
7.4x8.0%CN¥42.7b
36.3x42.5%CN¥29.9b

Price-To-Earnings vs Peers: 002340 is good value based on its Price-To-Earnings Ratio (36.3x) compared to the peer average (53.6x).


Price to Earnings Ratio vs Industry

How does 2340's PE Ratio compare vs other companies in the CN Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 002340 is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the CN Metals and Mining industry average (27.6x).


Price to Earnings Ratio vs Fair Ratio

What is 2340'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.

2340 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.3x
Fair PE Ratio32x

Price-To-Earnings vs Fair Ratio: 002340 is expensive based on its Price-To-Earnings Ratio (36.3x) compared to the estimated Fair Price-To-Earnings Ratio (32x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2340 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥5.92
CN¥6.09
+2.9%
27.6%CN¥8.50CN¥4.20n/a7
Mar ’25CN¥5.38
CN¥6.09
+13.2%
27.6%CN¥8.50CN¥4.20n/a7
Feb ’25CN¥4.52
CN¥6.09
+34.7%
27.6%CN¥8.50CN¥4.20n/a7
Jan ’25CN¥5.46
CN¥6.78
+24.1%
26.0%CN¥9.50CN¥4.40n/a7
Dec ’24CN¥5.58
CN¥7.12
+27.5%
22.6%CN¥9.50CN¥4.40n/a8
Nov ’24CN¥5.91
CN¥7.63
+29.1%
24.5%CN¥10.30CN¥4.40n/a8
Oct ’24CN¥6.09
CN¥7.67
+25.9%
25.8%CN¥10.30CN¥4.00n/a8
Sep ’24CN¥6.31
CN¥8.10
+28.4%
21.5%CN¥10.30CN¥4.00n/a9
Aug ’24CN¥7.05
CN¥8.19
+16.2%
20.8%CN¥10.30CN¥4.00n/a9
Jul ’24CN¥6.91
CN¥8.19
+18.5%
20.8%CN¥10.30CN¥4.00n/a9
Jun ’24CN¥6.76
CN¥8.21
+21.5%
21.1%CN¥10.30CN¥4.00n/a10
May ’24CN¥7.03
CN¥8.48
+20.6%
18.3%CN¥10.30CN¥5.10n/a8
Apr ’24CN¥7.47
CN¥8.33
+11.5%
25.8%CN¥11.80CN¥5.10n/a8
Mar ’24CN¥7.91
CN¥8.91
+12.7%
20.7%CN¥11.80CN¥5.10CN¥5.388
Feb ’24CN¥8.14
CN¥8.91
+9.5%
20.7%CN¥11.80CN¥5.10CN¥4.528
Jan ’24CN¥7.43
CN¥8.91
+20.0%
20.7%CN¥11.80CN¥5.10CN¥5.468
Dec ’23CN¥8.14
CN¥9.09
+11.6%
20.4%CN¥11.80CN¥5.10CN¥5.588
Nov ’23CN¥7.67
CN¥9.45
+23.2%
24.3%CN¥13.40CN¥5.10CN¥5.918
Oct ’23CN¥7.38
CN¥9.84
+33.3%
21.5%CN¥13.40CN¥6.50CN¥6.098
Sep ’23CN¥8.22
CN¥9.89
+20.3%
21.4%CN¥13.40CN¥6.50CN¥6.318
Aug ’23CN¥9.97
CN¥9.26
-7.1%
25.7%CN¥14.00CN¥6.50CN¥7.058
Jul ’23CN¥9.17
CN¥10.36
+13.0%
20.9%CN¥14.00CN¥7.00CN¥6.918
Jun ’23CN¥7.61
CN¥10.36
+36.2%
20.9%CN¥14.00CN¥7.00CN¥6.768
May ’23CN¥6.75
CN¥10.60
+57.0%
24.9%CN¥16.00CN¥7.00CN¥7.038
Apr ’23CN¥8.41
CN¥13.02
+54.8%
15.0%CN¥16.00CN¥11.00CN¥7.478
Mar ’23CN¥9.45
CN¥13.31
+40.9%
13.2%CN¥16.00CN¥11.00CN¥7.919

Analyst Forecast: Target price is less than 20% higher than the current share price.


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