ZTE Corporation

XSEC:000063 Stock Report

Market Cap: CN¥137.8b

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¥30.95) is trading above our estimate of fair value (CN¥16.37)

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 Ratio15.8x
EarningsCN¥9.39b
Market CapCN¥137.80b

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 Average30.2x
300308 Zhongji Innolight
31.6x32.6%CN¥146.1b
300628 Yealink Network Technology
19.1x17.3%CN¥47.0b
600487 Hengtong Optic-Electric
15.2x17.4%CN¥40.6b
002465 Guangzhou Haige Communications Group
55x36.6%CN¥29.5b
000063 ZTE
15.8x6.4%CN¥137.8b

Price-To-Earnings vs Peers: 000063 is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (30.4x).

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 15.8xIndustry Avg. 65.2xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 000063 is good value based on its Price-To-Earnings Ratio (15.8x) compared to the CN Communications industry average (65.2x).

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 Ratio15.8x
Fair PE Ratio26.9x

Price-To-Earnings vs Fair Ratio: 000063 is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (26.9x).

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¥30.95
CN¥32.43
+4.8%
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¥23.00n/a13
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
Nov ’23CN¥22.45
CN¥35.36
+57.5%
22.7%CN¥49.30CN¥19.70CN¥26.0310

Analyst Forecast: Target price is less than 20% higher than the current share price.

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