Jiangxi Hongcheng EnvironmentLtd Valuation

Is 600461 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 600461 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600461 (CN¥9.37) is trading below our estimate of fair value (CN¥11.06)

Significantly Below Fair Value: 600461 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600461?

Key metric: As 600461 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600461. This is calculated by dividing 600461's market cap by their current earnings.
What is 600461's PE Ratio?
PE Ratio	10.7x
Earnings	CN¥1.12b
Market Cap	CN¥11.92b

600461 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	2.3x
Enterprise Value/EBITDA	6.5x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does 600461's PE Ratio compare to its peers?

The above table shows the PE ratio for 600461 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	24.3x
600864 Harbin Hatou InvestmentLtd	31.2x	n/a	CN¥13.5b
600167 Luenmei QuantumLtd	19.5x	15.0%	CN¥13.9b
600323 Grandblue Environment	10.7x	7.8%	CN¥17.5b
003039 Guangdong Shunkong DevelopmentLtd	35.6x	n/a	CN¥9.0b
600461 Jiangxi Hongcheng EnvironmentLtd	10.7x	7.7%	CN¥11.9b

Price-To-Earnings vs Peers: 600461 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does 600461's PE Ratio compare vs other companies in the CN Water Utilities Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
000692 Shenyang Huitian Thermal PowerLtd	1.9x	n/a	US$265.04m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 600461 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Asian Water Utilities industry average (14.9x).

Price to Earnings Ratio vs Fair Ratio

What is 600461'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.

600461 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.7x
Fair PE Ratio	15.3x

Price-To-Earnings vs Fair Ratio: 600461 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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