Neusoft Valuation

Is 600718 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-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 600718 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600718 (CN¥7.63) is trading above our estimate of fair value (CN¥1.35)

Significantly Below Fair Value: 600718 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600718?

Other financial metrics that can be useful for relative valuation.

600718 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/Revenue0.7x
Enterprise Value/EBITDA13x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does 600718's PE Ratio compare to its peers?

The above table shows the PE ratio for 600718 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average70x
002063 YGSOFT
28.1x16.5%CN¥9.7b
300624 Wondershare Technology Group
97.6x30.1%CN¥8.9b
300682 Longshine Technology Group
15.5x16.0%CN¥8.8b
688083 ZwsoftLtd
138.8x40.6%CN¥7.4b
600718 Neusoft
122.1x53.8%CN¥9.0b

Price-To-Earnings vs Peers: 600718 is expensive based on its Price-To-Earnings Ratio (122.1x) compared to the peer average (70x).


Price to Earnings Ratio vs Industry

How does 600718's PE Ratio compare vs other companies in the CN Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a42.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a42.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 600718 is expensive based on its Price-To-Earnings Ratio (122.1x) compared to the CN Software industry average (56x).


Price to Earnings Ratio vs Fair Ratio

What is 600718'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.

600718 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio122.1x
Fair PE Ratio58.2x

Price-To-Earnings vs Fair Ratio: 600718 is expensive based on its Price-To-Earnings Ratio (122.1x) compared to the estimated Fair Price-To-Earnings Ratio (57.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 600718 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥7.63
CN¥10.63
+39.3%
1.2%CN¥10.80CN¥10.49n/a3
Jul ’25CN¥8.26
CN¥10.63
+28.7%
1.2%CN¥10.80CN¥10.49n/a3
Jun ’25CN¥8.18
CN¥11.47
+40.3%
12.8%CN¥14.00CN¥10.49n/a4
May ’25CN¥8.45
CN¥11.40
+34.9%
13.2%CN¥14.00CN¥10.49n/a4
Apr ’25CN¥8.65
CN¥11.72
+35.5%
13.8%CN¥14.00CN¥10.56n/a3
Mar ’25CN¥8.65
CN¥13.29
+53.6%
13.2%CN¥15.00CN¥10.87n/a3
Feb ’25CN¥7.53
CN¥13.29
+76.5%
13.2%CN¥15.00CN¥10.87n/a3
Jan ’25CN¥9.25
CN¥13.29
+43.7%
13.2%CN¥15.00CN¥10.87n/a3
Dec ’24CN¥9.92
CN¥13.29
+34.0%
13.2%CN¥15.00CN¥10.87n/a3
Nov ’24CN¥9.56
CN¥13.29
+39.0%
13.2%CN¥15.00CN¥10.87n/a3
Oct ’24CN¥9.77
CN¥13.95
+42.7%
6.3%CN¥15.00CN¥12.84n/a3
Sep ’24CN¥10.05
CN¥13.95
+38.8%
6.3%CN¥15.00CN¥12.84n/a3
Aug ’24CN¥10.37
CN¥14.60
+40.8%
2.7%CN¥15.00CN¥14.20n/a2
Jul ’24CN¥10.66
CN¥14.60
+37.0%
2.7%CN¥15.00CN¥14.20CN¥8.262
Jun ’24CN¥10.82
CN¥14.60
+34.9%
2.7%CN¥15.00CN¥14.20CN¥8.182
May ’24CN¥11.40
CN¥15.19
+33.2%
1.2%CN¥15.37CN¥15.00CN¥8.452
Apr ’24CN¥12.09
CN¥15.19
+25.6%
1.2%CN¥15.37CN¥15.00CN¥8.652
Mar ’24CN¥11.35
CN¥15.19
+33.8%
1.2%CN¥15.37CN¥15.00CN¥8.652
Feb ’24CN¥10.63
CN¥15.19
+42.9%
1.2%CN¥15.37CN¥15.00CN¥7.532
Jan ’24CN¥9.95
CN¥15.19
+52.6%
1.2%CN¥15.37CN¥15.00CN¥9.252
Dec ’23CN¥11.09
CN¥15.19
+36.9%
1.2%CN¥15.37CN¥15.00CN¥9.922
Nov ’23CN¥11.21
CN¥15.36
+37.0%
2.3%CN¥15.72CN¥15.00CN¥9.562
Oct ’23CN¥9.47
CN¥15.36
+62.2%
2.3%CN¥15.72CN¥15.00CN¥9.772
Sep ’23CN¥10.45
CN¥15.36
+47.0%
2.3%CN¥15.72CN¥15.00CN¥10.052
Aug ’23CN¥11.45
CN¥15.69
+37.0%
13.7%CN¥18.60CN¥13.47CN¥10.373
Jul ’23CN¥11.20
CN¥15.69
+40.1%
13.7%CN¥18.60CN¥13.47CN¥10.663

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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