iSoftStone Information Technology (Group) Co., Ltd.

XSEC:301236 Stock Report

Market Cap: CN¥59.8b

iSoftStone Information Technology (Group) Valuation

Is 301236 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 301236 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 301236 (CN¥62.79) is trading above our estimate of fair value (CN¥7.59)

Significantly Below Fair Value: 301236 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 301236?

Key metric: As 301236 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 301236. This is calculated by dividing 301236's market cap by their current revenue.
What is 301236's PS Ratio?
PS Ratio2.2x
SalesCN¥26.96b
Market CapCN¥59.84b

Price to Sales Ratio vs Peers

How does 301236's PS Ratio compare to its peers?

The above table shows the PS ratio for 301236 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
002065 DHC SoftwareLtd
2xn/aCN¥25.5b
300002 Beijing Ultrapower Software
3.7x15.5%CN¥24.1b
300674 Yusys Technologies
3.2x14.1%CN¥14.4b
600850 CETC Digital TechnologyLtd
1.6x12.8%CN¥16.1b
301236 iSoftStone Information Technology (Group)
2.2x16.9%CN¥59.8b

Price-To-Sales vs Peers: 301236 is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (2.7x).

Price to Sales Ratio vs Industry

How does 301236'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$3.06b
000948 Yunnan Nantian Electronics InformationLtd
0.8xn/aUS$1.02b
No more companies available in this PS range
301236 2.2xIndustry Avg. 4.7xNo. of Companies15PS03.67.210.814.418+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 301236 is good value based on its Price-To-Sales Ratio (2.2x) compared to the CN IT industry average (4.6x).

Price to Sales Ratio vs Fair Ratio

What is 301236'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.

301236 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: 301236 is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (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 301236 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥62.79
CN¥41.51
-33.9%
26.0%CN¥55.93CN¥30.00n/a3
Nov ’25CN¥60.50
CN¥40.74
-32.7%
27.1%CN¥55.93CN¥30.00n/a3
Oct ’25CN¥51.52
CN¥33.15
-35.7%
9.5%CN¥36.30CN¥30.00n/a2
Sep ’25CN¥34.03
CN¥33.15
-2.6%
9.5%CN¥36.30CN¥30.00n/a2
Aug ’25CN¥33.89
CN¥33.15
-2.2%
9.5%CN¥36.30CN¥30.00n/a2
Jul ’25CN¥35.92
CN¥33.15
-7.7%
9.5%CN¥36.30CN¥30.00n/a2
Jun ’25CN¥39.78
CN¥33.15
-16.7%
9.5%CN¥36.30CN¥30.00n/a2
May ’25CN¥42.15
CN¥44.00
+4.4%
31.8%CN¥58.00CN¥30.00n/a2
Apr ’25CN¥47.55
CN¥44.00
-7.5%
31.8%CN¥58.00CN¥30.00n/a2
Mar ’25CN¥45.48
CN¥40.70
-10.5%
26.3%CN¥51.40CN¥30.00n/a2
Feb ’25CN¥32.54
CN¥39.38
+21.0%
22.7%CN¥51.40CN¥30.00n/a3
Jan ’25CN¥46.20
CN¥40.38
-12.6%
19.7%CN¥51.40CN¥33.00n/a3
Dec ’24CN¥40.77
CN¥38.38
-5.9%
13.5%CN¥45.40CN¥33.00n/a3
Nov ’24CN¥33.47
CN¥32.98
-1.5%
13.0%CN¥36.74CN¥27.00CN¥60.503
Oct ’24CN¥26.58
CN¥31.91
+20.1%
12.5%CN¥36.74CN¥27.00CN¥51.523
Sep ’24CN¥20.36
CN¥33.15
+62.8%
8.4%CN¥36.74CN¥30.00CN¥34.033
Aug ’24CN¥24.51
CN¥33.15
+35.2%
8.4%CN¥36.74CN¥30.00CN¥33.893
May ’24CN¥26.26
CN¥31.92
+21.5%
4.4%CN¥33.33CN¥30.50CN¥42.152
Apr ’24CN¥33.33
CN¥30.92
-7.3%
1.3%CN¥31.33CN¥30.50CN¥47.552
Mar ’24CN¥25.86
CN¥30.92
+19.6%
1.3%CN¥31.33CN¥30.50CN¥45.482
Feb ’24CN¥27.21
CN¥30.92
+13.6%
1.3%CN¥31.33CN¥30.50CN¥32.542
Jan ’24CN¥23.45
CN¥30.92
+31.8%
1.3%CN¥31.33CN¥30.50CN¥46.202
Dec ’23n/a
CN¥30.92
0%
1.3%CN¥31.33CN¥30.50CN¥40.772
Nov ’23n/a
CN¥28.92
0%
5.5%CN¥30.50CN¥27.33CN¥33.472

Analyst Forecast: Target price is lower than the current share price.

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