ZTE Corporation

XSEC:000063 Stock Report

Market Cap: CN¥180.7b

ZTE Valuation

Is 000063 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 000063 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 000063 (CN¥40.99) is trading above our estimate of fair value (CN¥16.69)

Significantly Below Fair Value: 000063 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 000063?

Key metric: As 000063 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 000063. This is calculated by dividing 000063's market cap by their current earnings.
What is 000063's PE Ratio?
PE Ratio20.9x
EarningsCN¥9.39b
Market CapCN¥180.73b

Price to Earnings Ratio vs Peers

How does 000063's PE Ratio compare to its peers?

The above table shows the PE ratio for 000063 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.1x
300308 Zhongji Innolight
32.6x32.6%CN¥155.5b
300628 Yealink Network Technology
20.3x17.3%CN¥50.3b
600487 Hengtong Optic-Electric
16.3x18.0%CN¥45.3b
301165 Ruijie Networks
78.9x21.5%CN¥48.2b
000063 ZTE
20.9x6.5%CN¥180.7b

Price-To-Earnings vs Peers: 000063 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (40.3x).

Price to Earnings Ratio vs Industry

How does 000063's PE Ratio compare vs other companies in the CN Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
000063 20.9xIndustry Avg. 67.7xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 000063 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the CN Communications industry average (66.6x).

Price to Earnings Ratio vs Fair Ratio

What is 000063'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.

000063 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: 000063 is good value based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

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 000063 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥40.99
CN¥32.43
-20.9%
27.0%CN¥50.35CN¥16.51n/a11
Dec ’25CN¥31.16
CN¥32.43
+4.1%
27.0%CN¥50.35CN¥16.51n/a11
Nov ’25CN¥29.60
CN¥32.43
+9.6%
27.0%CN¥50.35CN¥16.51n/a11
Oct ’25CN¥31.15
CN¥32.87
+5.5%
27.4%CN¥54.24CN¥16.51n/a11
Sep ’25CN¥24.83
CN¥32.47
+30.8%
26.9%CN¥54.24CN¥16.51n/a12
Aug ’25CN¥27.16
CN¥34.21
+26.0%
24.8%CN¥54.24CN¥16.51n/a13
Jul ’25CN¥28.14
CN¥33.52
+19.1%
27.2%CN¥54.24CN¥16.51n/a13
Jun ’25CN¥26.96
CN¥33.55
+24.4%
28.3%CN¥54.24CN¥16.51n/a12
May ’25CN¥28.67
CN¥33.55
+17.0%
28.3%CN¥54.24CN¥16.51n/a12
Apr ’25CN¥28.16
CN¥34.71
+23.3%
25.8%CN¥54.24CN¥16.51n/a12
Mar ’25CN¥30.54
CN¥35.74
+17.0%
21.4%CN¥53.43CN¥26.30n/a13
Feb ’25CN¥22.27
CN¥37.56
+68.6%
25.8%CN¥56.50CN¥21.00n/a14
Jan ’25CN¥26.48
CN¥38.44
+45.2%
24.5%CN¥56.50CN¥23.00n/a13
Dec ’24CN¥26.14
CN¥38.44
+47.1%
24.5%CN¥56.50CN¥23.00CN¥31.1613
Nov ’24CN¥26.03
CN¥39.21
+50.6%
25.2%CN¥56.50CN¥23.00CN¥29.6013
Oct ’24CN¥32.68
CN¥44.68
+36.7%
17.8%CN¥56.50CN¥26.70CN¥31.1512
Sep ’24CN¥34.86
CN¥44.30
+27.1%
17.5%CN¥56.50CN¥26.70CN¥24.8313
Aug ’24CN¥39.83
CN¥45.47
+14.1%
18.2%CN¥58.00CN¥26.70CN¥27.1612
Jul ’24CN¥45.54
CN¥42.58
-6.5%
15.3%CN¥50.00CN¥26.70CN¥28.1413
Jun ’24CN¥35.91
CN¥42.26
+17.7%
16.1%CN¥49.90CN¥26.70CN¥26.9613
May ’24CN¥35.62
CN¥42.57
+19.5%
15.9%CN¥49.90CN¥26.70CN¥28.6713
Apr ’24CN¥32.56
CN¥40.85
+25.5%
18.1%CN¥49.90CN¥19.70CN¥28.1614
Mar ’24CN¥32.91
CN¥36.15
+9.8%
22.0%CN¥51.60CN¥19.70CN¥30.5411
Feb ’24CN¥26.98
CN¥35.94
+33.2%
21.1%CN¥49.30CN¥19.70CN¥22.2711
Jan ’24CN¥25.86
CN¥35.70
+38.1%
21.9%CN¥49.30CN¥19.70CN¥26.4811
Dec ’23CN¥25.20
CN¥36.16
+43.5%
22.3%CN¥49.30CN¥19.70CN¥26.1411

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 11:21
End of Day Share Price 2024/12/26 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

ZTE Corporation is covered by 73 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alban CousinArete Research Services LLP
Xiaoming BoAvic Securities Co., Ltd
Hsin-Shan GaiBarclays