China Minsheng Banking Corp., Ltd.

DB:GHFH Stock Report

Market Cap: €20.5b

China Minsheng Banking Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: GHFH (€0.34) is trading below our estimate of fair value (€1.07)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GHFH. This is calculated by dividing GHFH's market cap by their current earnings.
What is GHFH's PE Ratio?
PE Ratio5.8x
EarningsCN¥28.42b
Market CapCN¥156.27b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GHFH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.8x
CBK Commerzbank
8.9x8.2%€18.8b
PCZ ProCredit Holding
4.3x9.7%€462.9m
MBK Merkur PrivatBank KgaA
10.5x8.6%€112.8m
2891 CTBC Financial Holding
11.6x2.4%NT$722.1b
GHFH China Minsheng Banking
5.8x7.5%€156.3b

Price-To-Earnings vs Peers: GHFH is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GHFH 5.8xIndustry Avg. 7.4xNo. of Companies44PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GHFH is good value based on its Price-To-Earnings Ratio (5.8x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is GHFH'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.

GHFH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.8x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: GHFH is good value based on its Price-To-Earnings Ratio (5.8x) compared to the estimated Fair Price-To-Earnings Ratio (12x).

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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