CETC Digital TechnologyLtd Valuation

Is 600850 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-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 600850 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600850 (CN¥23.7) is trading above our estimate of fair value (CN¥9.59)

Significantly Below Fair Value: 600850 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600850?

Key metric: As 600850 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600850. This is calculated by dividing 600850's market cap by their current earnings.
What is 600850's PE Ratio?
PE Ratio	31x
Earnings	CN¥521.38m
Market Cap	CN¥16.17b

600850 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	1.6x
Enterprise Value/EBITDA	28.5x
PEG Ratio	2.5x

Price to Earnings Ratio vs Peers

How does 600850's PE Ratio compare to its peers?

The above table shows the PE ratio for 600850 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	53.6x
002368 Taiji Computer	78.3x	37.5%	CN¥16.8b
002373 China Transinfo Technology	66.4x	59.7%	CN¥15.6b
300674 Yusys Technologies	32.9x	17.7%	CN¥14.1b
300525 Fujian Boss Software	37.1x	24.8%	CN¥12.7b
600850 CETC Digital TechnologyLtd	31x	12.5%	CN¥16.2b

Price-To-Earnings vs Peers: 600850 is good value based on its Price-To-Earnings Ratio (31x) compared to the peer average (53.6x).

Price to Earnings Ratio vs Industry

How does 600850's PE Ratio compare vs other companies in the CN IT Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 600850 is good value based on its Price-To-Earnings Ratio (31x) compared to the CN IT industry average (73.5x).

Price to Earnings Ratio vs Fair Ratio

What is 600850'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.

600850 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31x
Fair PE Ratio	39.6x

Price-To-Earnings vs Fair Ratio: 600850 is good value based on its Price-To-Earnings Ratio (31x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

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.

Discover undervalued companies

DBAPPSecurity

CN¥5.2b

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

688023

CN¥50.80

-1.0%

-48.9%

Newland Digital TechnologyLtd

CN¥20.3b

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

997

CN¥20.05

-2.4%

12.8%

Yusys Technologies

CN¥14.1b

Operates as financial technology facilitator that provides fintech products and services.

300674

CN¥20.50

-9.5%

21.7%