Digital China Information Service Group Company Ltd.

SZSE:000555 Stock Report

Market Cap: CN¥11.3b

Digital China Information Service Group Valuation

Is 000555 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 000555 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000555 (CN¥11.78) is trading above our estimate of fair value (CN¥11.35)

Significantly Below Fair Value: 000555 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000555?

Key metric: As 000555 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 000555. This is calculated by dividing 000555's market cap by their current revenue.
What is 000555's PS Ratio?
PS Ratio0.9x
SalesCN¥12.12b
Market CapCN¥11.32b

Price to Sales Ratio vs Peers

How does 000555's PS Ratio compare to its peers?

The above table shows the PS ratio for 000555 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average9.9x
600728 Pci Technology GroupLtd
1.5xn/aCN¥11.0b
300678 Chengdu Information Technology of Chinese Academy of SciencesLtd
18.1xn/aCN¥11.1b
300348 Shenzhen Sunline Tech
6.7x20.1%CN¥11.9b
300468 Shenzhen Forms Syntron InformationLtd
13.3xn/aCN¥9.8b
000555 Digital China Information Service Group
0.9x9.7%CN¥11.3b

Price-To-Sales vs Peers: 000555 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (9.9x).

Price to Sales Ratio vs Industry

How does 000555's PS Ratio compare vs other companies in the CN IT Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
000034 Digital China Group
0.2x5.8%US$2.98b
000948 Yunnan Nantian Electronics InformationLtd
0.8xn/aUS$1.00b
No more companies available in this PS range
000555 0.9xIndustry Avg. 4.6xNo. of Companies13PS03.26.49.612.816+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 000555 is good value based on its Price-To-Sales Ratio (0.9x) compared to the CN IT industry average (4.6x).

Price to Sales Ratio vs Fair Ratio

What is 000555'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.

000555 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: 000555 is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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