Jilin Jiutai Rural Commercial Bank Corporation Limited

DB:2JJ Stock Report

Market Cap: €513.3m

Jilin Jiutai Rural Commercial Bank Valuation

Is 2JJ 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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2JJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2JJ (€0.1) is trading below our estimate of fair value (€0.41)

Significantly Below Fair Value: 2JJ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2JJ?

Key metric: As 2JJ is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for 2JJ. This is calculated by dividing 2JJ's market cap by their current book value.
What is 2JJ's PB Ratio?
PB Ratio0.2x
BookCN¥16.32b
Market CapCN¥3.87b

Price to Book Ratio vs Peers

How does 2JJ's PB Ratio compare to its peers?

The above table shows the PB ratio for 2JJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average0.6x
PCZ ProCredit Holding
0.4x9.9%€450.0m
UBK UmweltBank
0.9xn/a€227.8m
MBK Merkur PrivatBank KgaA
0.4x8.6%€107.3m
CBK Commerzbank
0.5x8.8%€18.2b
2JJ Jilin Jiutai Rural Commercial Bank
0.2xn/a€4.2b

Price-To-Book vs Peers: 2JJ is good value based on its Price-To-Book Ratio (0.2x) compared to the peer average (0.6x).

Price to Book Ratio vs Industry

How does 2JJ's PB Ratio compare vs other companies in the European Banks Industry?

6 CompaniesPrice / BookEstimated GrowthMarket Cap
2JJ 0.2xIndustry Avg. 0.8xNo. of Companies35PB00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: 2JJ is good value based on its Price-To-Book Ratio (0.2x) compared to the European Banks industry average (0.8x).

Price to Book Ratio vs Fair Ratio

What is 2JJ's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2JJ PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.2x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate 2JJ's Price-To-Book Fair Ratio for valuation analysis.

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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