Guangzhou Lushan New Materials Valuation

Is 603051 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 603051 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603051 (CN¥28.81) is trading below our estimate of fair value (CN¥301.88)

Significantly Below Fair Value: 603051 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603051?

Key metric: As 603051 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603051. This is calculated by dividing 603051's market cap by their current revenue.
What is 603051's PS Ratio?
PS Ratio	1.2x
Sales	CN¥2.28b
Market Cap	CN¥2.78b

603051 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	1.4x
Enterprise Value/EBITDA	38.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 603051's PS Ratio compare to its peers?

The above table shows the PS ratio for 603051 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	2.6x
301076 Sino-High (China)	6.6x	30.3%	CN¥2.7b
603683 Shanghai Smith Adhesive New MaterialLtd	1.5x	n/a	CN¥2.7b
605488 Zhejiang Fulai New MaterialLtd	1.3x	n/a	CN¥3.0b
300644 Nanjing Julong Science & TechnologyLTD	1.2x	n/a	CN¥2.6b
603051 Guangzhou Lushan New Materials	1.2x	n/a	CN¥2.8b

Price-To-Sales vs Peers: 603051 is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

How does 603051'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$13.96b
002493 Rongsheng Petrochemical	0.3x	8.5%	US$12.61b
000301 Jiangsu Eastern ShenghongLtd	0.4x	6.8%	US$8.71b
601233 Tongkun Group	0.3x	4.6%	US$3.81b

24 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 603051 is good value based on its Price-To-Sales Ratio (1.2x) compared to the CN Chemicals industry average (2.5x).

Price to Sales Ratio vs Fair Ratio

What is 603051'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.

603051 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 603051'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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