Sinopec Shanghai Petrochemical Valuation

Is 600688 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 600688 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600688 (CN¥2.97) is trading above our estimate of fair value (CN¥0.43)

Significantly Below Fair Value: 600688 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600688?

Key metric: As 600688 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600688. This is calculated by dividing 600688's market cap by their current revenue.
What is 600688's PS Ratio?
PS Ratio	0.1x
Sales	CN¥89.15b
Market Cap	CN¥25.28b

600688 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	0.1x
Enterprise Value/EBITDA	19x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 600688's PS Ratio compare to its peers?

The above table shows the PS ratio for 600688 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	3.7x
600141 Hubei Xingfa Chemicals Group	0.9x	7.6%	CN¥25.6b
300699 Weihai Guangwei Composites	10.2x	15.6%	CN¥27.2b
603737 SKSHU PaintLtd	1.9x	11.7%	CN¥23.8b
600299 Bluestar Adisseo	2x	8.6%	CN¥29.2b
600688 Sinopec Shanghai Petrochemical	0.1x	-3.1%	CN¥27.2b

Price-To-Sales vs Peers: 600688 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (3.7x).

Price to Sales Ratio vs Industry

How does 600688's PS Ratio compare vs other companies in the CN Chemicals Industry?

25 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	2.4x	16.3%
600688 Sinopec Shanghai Petrochemical	0.1x	-3.1%	US$3.49b
600346 Hengli PetrochemicalLtd	0.4x	4.3%	US$13.74b
002493 Rongsheng Petrochemical	0.3x	9.3%	US$12.69b

25 Companies		Estimated Growth	Market Cap
Industry Avg.	2.4x	39.9%
600688 Sinopec Shanghai Petrochemical	0.1x	97.9%	US$3.49b

No more companies

Price-To-Sales vs Industry: 600688 is good value based on its Price-To-Sales Ratio (0.1x) compared to the CN Chemicals industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is 600688'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.

600688 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	0.7x

Price-To-Sales vs Fair Ratio: 600688 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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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