Servyou Software Group Co., Ltd.

SHSE:603171 Stock Report

Market Cap: CN¥11.9b

Servyou Software Group Valuation

Is 603171 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 603171 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603171 (CN¥29.47) is trading below our estimate of fair value (CN¥36.14)

Significantly Below Fair Value: 603171 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603171?

Key metric: As 603171 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 603171. This is calculated by dividing 603171's market cap by their current earnings.
What is 603171's PE Ratio?
PE Ratio125.1x
EarningsCN¥95.86m
Market CapCN¥11.92b

Price to Earnings Ratio vs Peers

How does 603171's PE Ratio compare to its peers?

The above table shows the PE ratio for 603171 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average91.8x
600718 Neusoft
135.5x59.5%CN¥12.2b
300598 ArcherMind Technology (Nanjing)
48.4xn/aCN¥12.1b
002063 YGSOFT
38.4x21.9%CN¥11.4b
688088 ArcSoft
145x40.7%CN¥13.4b
603171 Servyou Software Group
125.1x50.9%CN¥11.9b

Price-To-Earnings vs Peers: 603171 is expensive based on its Price-To-Earnings Ratio (125.1x) compared to the peer average (91.8x).

Price to Earnings Ratio vs Industry

How does 603171's PE Ratio compare vs other companies in the CN Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
000606 Shunliban Information ServiceLtd
2.7xn/aUS$29.57m
No more companies available in this PE range
603171 125.1xIndustry Avg. 87.6xNo. of Companies6PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 603171 is expensive based on its Price-To-Earnings Ratio (125.1x) compared to the CN Software industry average (87.6x).

Price to Earnings Ratio vs Fair Ratio

What is 603171'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.

603171 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio125.1x
Fair PE Ratio53.5x

Price-To-Earnings vs Fair Ratio: 603171 is expensive based on its Price-To-Earnings Ratio (125.1x) compared to the estimated Fair Price-To-Earnings Ratio (53.5x).

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 603171 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥29.47
CN¥34.90
+18.4%
4.3%CN¥37.00CN¥33.70n/a3
Nov ’25CN¥27.36
CN¥34.90
+27.6%
4.3%CN¥37.00CN¥33.70n/a3
Oct ’25CN¥29.17
CN¥34.90
+19.6%
4.3%CN¥37.00CN¥33.70n/a3
Sep ’25CN¥24.02
CN¥34.90
+45.3%
4.3%CN¥37.00CN¥33.70n/a3
Aug ’25CN¥26.08
CN¥39.29
+50.7%
5.2%CN¥42.00CN¥37.00n/a3
Jul ’25CN¥29.74
CN¥39.29
+32.1%
5.2%CN¥42.00CN¥37.00n/a3
Jun ’25CN¥22.58
CN¥36.63
+62.2%
5.5%CN¥38.88CN¥34.00n/a3
May ’25CN¥25.04
CN¥36.63
+46.3%
5.5%CN¥38.88CN¥34.00n/a3
Apr ’25CN¥25.99
CN¥43.63
+67.9%
10.7%CN¥50.00CN¥38.88n/a3
Mar ’25CN¥27.30
CN¥46.00
+68.5%
8.7%CN¥50.00CN¥42.00n/a2
Feb ’25CN¥24.62
CN¥46.00
+86.8%
8.7%CN¥50.00CN¥42.00n/a2
Jun ’24CN¥42.78
CN¥56.25
+31.5%
15.6%CN¥65.00CN¥47.49CN¥22.582
May ’24CN¥43.96
CN¥56.25
+27.9%
15.6%CN¥65.00CN¥47.49CN¥25.042
Apr ’24CN¥43.98
CN¥56.25
+27.9%
15.6%CN¥65.00CN¥47.49CN¥25.992

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

State Grid Information & Communication

CN¥26.2b

State Grid Information & Communication Co., Ltd.

600131

CN¥21.83

7D

-7.3%

1Y

38.7%

Glodon

CN¥22.0b

Provides digital building platform services to the construction industry in China.

2410

CN¥13.32

7D

-9.8%

1Y

-36.0%

Beijing Ultrapower Software

CN¥24.4b

Engages in the AI/ICT operation management, mobile game, Internet of Things communication, and innovative solutions in China and internationally.

300002

CN¥12.46

7D

-14.2%

1Y

33.0%