Linewell Software Valuation

Q: What is the Fair Price of 603636 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603636 (CN¥10.97) is trading above our estimate of [[fair value]] (CN¥0.77)

Is 603636 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-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 603636 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603636 (CN¥10.97) is trading above our estimate of fair value (CN¥0.77)

Significantly Below Fair Value: 603636 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603636?

Key metric: As 603636 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 603636. This is calculated by dividing 603636's market cap by their current revenue.
What is 603636's PS Ratio?
PS Ratio	4.7x
Sales	CN¥1.34b
Market Cap	CN¥6.37b

603636 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	5.8x
Enterprise Value/EBITDA	102.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 603636's PS Ratio compare to its peers?

The above table shows the PS ratio for 603636 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	9.2x
300302 Toyou Feiji Electronics	18.1x	n/a	CN¥7.4b
300872 Tansun Technology	3.5x	12.7%	CN¥6.6b
603918 Shanghai Golden Bridge InfoTechLtd	8.2x	n/a	CN¥5.6b
002777 Sichuan Jiuyuan Yinhai Software.Co.Ltd	6.9x	18.6%	CN¥8.4b
603636 Linewell Software	4.7x	25.4%	CN¥6.4b

Price-To-Sales vs Peers: 603636 is good value based on its Price-To-Sales Ratio (4.7x) compared to the peer average (9.2x).

Price to Sales Ratio vs Industry

How does 603636's PS Ratio compare vs other companies in the CN Software Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
300038 Beijing Shuzhi TechnologyLtd	0.2x	n/a	US$52.48m
688555 Essence Information Technology	0.7x	n/a	US$12.88m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 603636 is good value based on its Price-To-Sales Ratio (4.7x) compared to the CN Software industry average (7.3x).

Price to Sales Ratio vs Fair Ratio

What is 603636'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.

603636 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.7x
Fair PS Ratio	5.1x

Price-To-Sales vs Fair Ratio: 603636 is good value based on its Price-To-Sales Ratio (4.7x) compared to the estimated Fair Price-To-Sales Ratio (5.1x).

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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