China Railway Group Limited

DB:CNO Stock Report

Market Cap: €19.2b

China Railway Group Valuation

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

Below Fair Value: CNO (€0.44) is trading above our estimate of fair value (€0.27)

Significantly Below Fair Value: CNO is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CNO. This is calculated by dividing CNO's market cap by their current earnings.
What is CNO's PE Ratio?
PE Ratio5.6x
EarningsCN¥28.34b
Market CapCN¥145.41b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.3x
HOT HOCHTIEF
12.4x2.5%€8.9b
NCH2 thyssenkrupp nucera KGaA
185.3x55.9%€1.1b
MTX MTU Aero Engines
24.1x11.2%€17.1b
B5A0 BAUER
31.6x38.2%€202.3m
CNO China Railway Group
5.6x11.9%€145.4b

Price-To-Earnings vs Peers: CNO is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (63.3x).


Price to Earnings Ratio vs Industry

How does CNO's PE Ratio compare vs other companies in the European Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNO 5.6xIndustry Avg. 13.2xNo. of Companies17PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CNO is good value based on its Price-To-Earnings Ratio (5.6x) compared to the European Construction industry average (13.2x).


Price to Earnings Ratio vs Fair Ratio

What is CNO'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.

CNO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: CNO is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


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.


Discover undervalued companies