Hangzhou Electronic Soul Network Technology Valuation

Q: What is the Fair Price of 603258 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603258 (CN¥20.91) is trading above our estimate of [[fair value]] (CN¥9.6)

Is 603258 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 603258 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603258 (CN¥20.91) is trading above our estimate of fair value (CN¥9.6)

Significantly Below Fair Value: 603258 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603258?

Key metric: As 603258 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603258. This is calculated by dividing 603258's market cap by their current revenue.
What is 603258's PS Ratio?
PS Ratio	8.6x
Sales	CN¥584.39m
Market Cap	CN¥5.03b

603258 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	6x
Enterprise Value/EBITDA	42.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 603258's PS Ratio compare to its peers?

The above table shows the PS ratio for 603258 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	18.5x
300299 Fuchun Technology	17.1x	n/a	CN¥4.3b
300052 Shenzhen Zqgame	22x	10.9%	CN¥5.1b
300467 Sichuan Xunyou Network Technology	11.9x	n/a	CN¥3.6b
002306 Cloud Live Technology GroupLtd	22.9x	n/a	CN¥3.5b
603258 Hangzhou Electronic Soul Network Technology	8.6x	n/a	CN¥5.0b

Price-To-Sales vs Peers: 603258 is good value based on its Price-To-Sales Ratio (8.6x) compared to the peer average (17.6x).

Price to Sales Ratio vs Industry

How does 603258'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: 603258 is expensive based on its Price-To-Sales Ratio (8.6x) compared to the CN Entertainment industry average (6.7x).

Price to Sales Ratio vs Fair Ratio

What is 603258'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.

603258 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	8.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 603258'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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