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 Ratio	0.9x
Sales	CN¥12.12b
Market Cap	CN¥11.32b

000555 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	0.9x
Enterprise Value/EBITDA	81.7x
PEG Ratio	59.7x

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.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	10.1x
600728 Pci Technology GroupLtd	1.5x	n/a	CN¥11.0b
300678 Chengdu Information Technology of Chinese Academy of SciencesLtd	18.5x	n/a	CN¥11.1b
300348 Shenzhen Sunline Tech	6.9x	20.1%	CN¥11.9b
300468 Shenzhen Forms Syntron InformationLtd	13.5x	n/a	CN¥9.8b
000555 Digital China Information Service Group	0.9x	9.7%	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 Companies	Price / Sales	Estimated Growth	Market Cap
000034 Digital China Group	0.2x	5.8%	US$2.98b
000948 Yunnan Nantian Electronics InformationLtd	0.8x	n/a	US$999.90m

No more companies available in this PS range

2 Companies		Estimated Growth	Market 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 Ratio	0.9x
Fair PS Ratio	2.3x

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.

Discover undervalued companies

State Grid Information & Communication

CN¥24.6b

State Grid Information & Communication Co., Ltd.

600131

CN¥20.44

-6.4%

32.6%

DBAPPSecurity

CN¥4.8b

Engages in the research and development, manufacture, and sale of cybersecurity products in China.

688023

CN¥47.56

-3.4%

-52.3%

Newland Digital TechnologyLtd

CN¥19.6b

Provides bar code, financial POS terminal equipment, mobile and other communications, and IoT services in China and internationally.

997

CN¥19.38

-3.5%

7.7%