Dongguan Rural Commercial Bank Co., Ltd.

DB:857 Stock Report

Market Cap: €3.0b

Dongguan Rural Commercial Bank Valuation

Is 857 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 857 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 857 (€0.42) is trading below our estimate of fair value (€1.73)

Significantly Below Fair Value: 857 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 857?

Key metric: As 857 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 857. This is calculated by dividing 857's market cap by their current earnings.
What is 857's PE Ratio?
PE Ratio4.8x
EarningsCN¥4.66b
Market CapCN¥22.57b

Price to Earnings Ratio vs Peers

How does 857's PE Ratio compare to its peers?

The above table shows the PE ratio for 857 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.5x
CBK Commerzbank
8.1x8.8%€17.1b
BOH Bank of Hawaii
24.2x13.2%US$3.2b
BKU BankUnited
17.5x13.0%US$3.2b
SFNC Simmons First National
24.1x28.1%US$3.1b
857 Dongguan Rural Commercial Bank
4.8xn/a€24.2b

Price-To-Earnings vs Peers: 857 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (18.5x).


Price to Earnings Ratio vs Industry

How does 857's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
857 4.8xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 857 is good value based on its Price-To-Earnings Ratio (4.8x) compared to the European Banks industry average (7.2x).


Price to Earnings Ratio vs Fair Ratio

What is 857'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.

857 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 857's Price-To-Earnings 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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