Zhengzhou Coal Mining Machinery Group Company Limited

DB:ZGC Stock Report

Market Cap: €3.0b

Zhengzhou Coal Mining Machinery Group Valuation

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

Below Fair Value: ZGC (€1.2) is trading below our estimate of fair value (€3.54)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ZGC. This is calculated by dividing ZGC's market cap by their current earnings.
What is ZGC's PE Ratio?
PE Ratio6.1x
EarningsCN¥3.87b
Market CapCN¥22.74b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZGC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.8x
JUN3 Jungheinrich
9.2x6.9%€2.6b
KGX KION GROUP
13.9x17.4%€4.6b
R3NK RENK Group
92.4x35.5%€2.0b
WAC Wacker Neuson
7.7x16.0%€881.5m
ZGC Zhengzhou Coal Mining Machinery Group
6.1x11.6%€22.7b

Price-To-Earnings vs Peers: ZGC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (30.8x).

Price to Earnings Ratio vs Industry

How does ZGC's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
ZGC 6.1xIndustry Avg. 14.0xNo. of Companies5PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZGC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the German Machinery industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is ZGC'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.

ZGC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: ZGC is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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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