Lingyuan Iron & Steel Valuation

Q: What is the Fair Price of 600231 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600231 (CN¥2.04) is trading below our estimate of [[fair value]] (CN¥3.63)

Is 600231 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 600231 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600231 (CN¥2.04) is trading below our estimate of fair value (CN¥3.63)

Significantly Below Fair Value: 600231 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600231?

Key metric: As 600231 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600231. This is calculated by dividing 600231's market cap by their current revenue.
What is 600231's PS Ratio?
PS Ratio	0.3x
Sales	CN¥18.68b
Market Cap	CN¥5.73b

600231 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	0.4x
Enterprise Value/EBITDA	-4.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 600231's PS Ratio compare to its peers?

The above table shows the PS ratio for 600231 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	3.3x
301141 Zhejiang Zhongke Magnetic Industry	10.3x	n/a	CN¥5.1b
600569 Anyang Iron and SteelLtd	0.2x	n/a	CN¥5.3b
600581 XinJiang Ba Yi Iron & SteelLtd	0.2x	n/a	CN¥5.0b
601011 Baotailong New Materials	2.4x	n/a	CN¥5.4b
600231 Lingyuan Iron & Steel	0.3x	n/a	CN¥5.7b

Price-To-Sales vs Peers: 600231 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (3.3x).

Price to Sales Ratio vs Industry

How does 600231's PS Ratio compare vs other companies in the CN Metals and Mining Industry?

25 Companies	Price / Sales	Estimated Growth	Market Cap
000630 Tongling Nonferrous Metals GroupLtd	0.3x	12.9%	US$5.81b
000932 Hunan Valin Steel	0.2x	3.1%	US$4.19b
000878 Yunnan CopperLtd	0.2x	8.9%	US$3.49b
000959 Beijing Shougang	0.2x	-0.2%	US$3.38b

25 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 600231 is good value based on its Price-To-Sales Ratio (0.3x) compared to the CN Metals and Mining industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is 600231'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.

600231 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 600231'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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