Digital China Group Co., Ltd.

SZSE:000034 Stock Report

Market Cap: CN¥22.7b

Digital China Group Valuation

Is 000034 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 000034 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000034 (CN¥35.07) is trading below our estimate of fair value (CN¥50.56)

Significantly Below Fair Value: 000034 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000034?

Key metric: As 000034 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 000034. This is calculated by dividing 000034's market cap by their current earnings.
What is 000034's PE Ratio?
PE Ratio19.2x
EarningsCN¥1.21b
Market CapCN¥22.68b

Price to Earnings Ratio vs Peers

How does 000034's PE Ratio compare to its peers?

The above table shows the PE ratio for 000034 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.5x
300017 Wangsu Science & TechnologyLtd
36.1x13.8%CN¥21.8b
300383 Beijing Sinnet TechnologyLtd
50.6x19.9%CN¥19.5b
600131 State Grid Information & Communication
33.5x13.5%CN¥26.2b
600602 INESA Intelligent Tech
106x21.3%CN¥17.2b
000034 Digital China Group
19.2x21.3%CN¥22.7b

Price-To-Earnings vs Peers: 000034 is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (56.5x).

Price to Earnings Ratio vs Industry

How does 000034's PE Ratio compare vs other companies in the CN IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
000034 19.2xIndustry Avg. 69.7xNo. of Companies4PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 000034 is good value based on its Price-To-Earnings Ratio (19.2x) compared to the CN IT industry average (69.7x).

Price to Earnings Ratio vs Fair Ratio

What is 000034'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.

000034 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ratio44.5x

Price-To-Earnings vs Fair Ratio: 000034 is good value based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (44.5x).

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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