Lanzhou Lishang Guochao Industrial Group Co.,Ltd

SHSE:600738 Stock Report

Market Cap: CN¥3.9b

Lanzhou Lishang Guochao Industrial GroupLtd Valuation

Is 600738 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 600738 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600738 (CN¥5.35) is trading above our estimate of fair value (CN¥5.17)

Significantly Below Fair Value: 600738 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600738?

Key metric: As 600738 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600738. This is calculated by dividing 600738's market cap by their current earnings.
What is 600738's PE Ratio?
PE Ratio35.1x
EarningsCN¥112.12m
Market CapCN¥3.90b

Price to Earnings Ratio vs Peers

How does 600738's PE Ratio compare to its peers?

The above table shows the PE ratio for 600738 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average54.4x
603101 Xinjiang Winka Times Department StoreLtd
71.7xn/aCN¥3.6b
600838 Shanghai Join BuyLtd
80.9xn/aCN¥3.6b
000417 Hefei Department Store GroupLtd
21.4x19.4%CN¥4.7b
301110 Qingmu Tec
43.6x46.2%CN¥4.2b
600738 Lanzhou Lishang Guochao Industrial GroupLtd
35.1x13.3%CN¥3.9b

Price-To-Earnings vs Peers: 600738 is good value based on its Price-To-Earnings Ratio (35.1x) compared to the peer average (54.4x).


Price to Earnings Ratio vs Industry

How does 600738's PE Ratio compare vs other companies in the CN Multiline Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
600738 35.1xIndustry Avg. 39.1xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600738 is good value based on its Price-To-Earnings Ratio (35.1x) compared to the CN Multiline Retail industry average (39.1x).


Price to Earnings Ratio vs Fair Ratio

What is 600738'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.

600738 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.1x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: 600738 is expensive based on its Price-To-Earnings Ratio (35.1x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).


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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