Hunan Fangsheng Pharmaceutical Valuation

Q: What is the Fair Price of 603998 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603998 (CN¥10.78) is trading above our estimate of [[fair value]] (CN¥0.44)

Is 603998 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 603998 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603998 (CN¥10.78) is trading above our estimate of fair value (CN¥0.44)

Significantly Below Fair Value: 603998 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603998?

Key metric: As 603998 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603998. This is calculated by dividing 603998's market cap by their current earnings.
What is 603998's PE Ratio?
PE Ratio	17.3x
Earnings	CN¥272.96m
Market Cap	CN¥4.73b

603998 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	3x
Enterprise Value/EBITDA	20.1x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 603998's PE Ratio compare to its peers?

The above table shows the PE ratio for 603998 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	40.3x
300233 Shandong Jincheng Pharmaceutical Group	25.4x	n/a	CN¥4.9b
600628 Shanghai New World	97.3x	n/a	CN¥4.4b
600479 ZhuZhou QianJin PharmaceuticalLtd	18.7x	n/a	CN¥5.5b
600351 Yabao Pharmaceutical Group	19.9x	n/a	CN¥4.4b
603998 Hunan Fangsheng Pharmaceutical	17.3x	16.5%	CN¥4.7b

Price-To-Earnings vs Peers: 603998 is good value based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (40.3x).

Price to Earnings Ratio vs Industry

How does 603998's PE Ratio compare vs other companies in the CN Pharmaceuticals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 603998 is good value based on its Price-To-Earnings Ratio (17.3x) compared to the CN Pharmaceuticals industry average (31.1x).

Price to Earnings Ratio vs Fair Ratio

What is 603998's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603998 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.3x
Fair PE Ratio	22.8x

Price-To-Earnings vs Fair Ratio: 603998 is good value based on its Price-To-Earnings Ratio (17.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

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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