Talkweb Information SystemLtd Valuation

Q: What is the Fair Price of 002261 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002261 (CN¥22.45) is trading above our estimate of [[fair value]] (CN¥0.26)

Is 002261 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 002261 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002261 (CN¥22.45) is trading above our estimate of fair value (CN¥0.26)

Significantly Below Fair Value: 002261 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002261?

Key metric: As 002261 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 002261. This is calculated by dividing 002261's market cap by their current revenue.
What is 002261's PS Ratio?
PS Ratio	6.7x
Sales	CN¥4.23b
Market Cap	CN¥28.20b

002261 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	6.8x
Enterprise Value/EBITDA	710.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 002261's PS Ratio compare to its peers?

The above table shows the PS ratio for 002261 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	4.4x
002517 Kingnet Network	5.6x	13.7%	CN¥29.3b
002602 Zhejiang Century Huatong GroupLtd	1.6x	10.2%	CN¥31.2b
002558 Giant Network Group	8.4x	13.4%	CN¥24.0b
002555 37 Interactive Entertainment Network Technology Group	2x	7.8%	CN¥36.4b
002261 Talkweb Information SystemLtd	6.7x	15.6%	CN¥28.2b

Price-To-Sales vs Peers: 002261 is expensive based on its Price-To-Sales Ratio (6.7x) compared to the peer average (4.4x).

Price to Sales Ratio vs Industry

How does 002261's PS Ratio compare vs other companies in the CN Entertainment Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
002502 Dinglong CultureLtd	0.9x	n/a	US$82.97m
000673 Lead Eastern InvestmentLtd	1.2x	n/a	US$29.46m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 002261 is good value based on its Price-To-Sales Ratio (6.7x) compared to the CN Entertainment industry average (6.8x).

Price to Sales Ratio vs Fair Ratio

What is 002261'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.

002261 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6.7x
Fair PS Ratio	3.9x

Price-To-Sales vs Fair Ratio: 002261 is expensive based on its Price-To-Sales Ratio (6.7x) compared to the estimated Fair Price-To-Sales Ratio (3.9x).

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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