Li Ning Valuation

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

Below Fair Value: LNLB (€2.45) is trading below our estimate of fair value (€3.7)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LNLB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA9.7x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LNLB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26x
BOSS Hugo Boss
13.5x13.8%€3.5b
BIJ Bijou Brigitte modische Accessoires
12.2xn/a€294.9m
PUM PUMA
21.4x15.0%€6.5b
BC Brunello Cucinelli
56.9x12.5%€6.5b
LNLB Li Ning
15.3x10.3%€52.8b

Price-To-Earnings vs Peers: LNLB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (26x).


Price to Earnings Ratio vs Industry

How does LNLB's PE Ratio compare vs other companies in the European Luxury Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LNLB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the European Luxury industry average (15.5x).


Price to Earnings Ratio vs Fair Ratio

What is LNLB'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.

LNLB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: LNLB is expensive based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LNLB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.45
€3.15
+29.0%
26.2%€6.20€1.67n/a33
Apr ’25€2.41
€3.20
+32.8%
24.0%€6.14€1.65n/a34
Mar ’25€2.34
€3.42
+46.1%
41.8%€8.16€1.64n/a32
Feb ’25€2.07
€3.71
+79.7%
44.6%€8.18€1.64n/a32
Jan ’25€2.42
€4.56
+88.6%
29.5%€8.14€2.21n/a32
Dec ’24€2.48
€4.82
+94.4%
24.4%€8.13€3.04n/a32
Nov ’24€3.03
€5.06
+67.3%
24.3%€8.23€3.08n/a32
Oct ’24€3.90
€7.07
+81.5%
16.0%€10.74€4.92n/a31
Sep ’24€4.40
€6.98
+58.5%
15.8%€10.56€4.84n/a31
Aug ’24€5.16
€8.07
+56.5%
15.8%€10.90€4.89n/a32
Jul ’24€4.91
€8.37
+70.4%
12.8%€10.43€4.88n/a32
Jun ’24€4.99
€8.77
+75.6%
11.6%€10.80€5.05n/a32
May ’24€6.46
€8.84
+36.7%
11.6%€10.88€5.09€2.4532
Apr ’24€7.20
€9.11
+26.6%
11.6%€11.10€5.19€2.4131
Mar ’24€8.50
€10.15
+19.4%
13.2%€14.10€5.26€2.3429
Feb ’24€8.85
€10.01
+13.2%
13.5%€14.02€5.23€2.0730
Jan ’24€8.00
€9.66
+20.8%
14.7%€14.01€5.50€2.4230
Dec ’23€7.44
€9.89
+32.9%
15.7%€14.06€5.52€2.4831
Nov ’23€5.74
€10.18
+77.4%
16.0%€14.45€5.67€3.0332
Oct ’23€7.64
€11.17
+46.3%
10.4%€14.66€9.57€3.9031
Sep ’23€8.75
€11.28
+29.0%
9.9%€14.84€9.69€4.4031
Aug ’23€7.94
€10.66
+34.3%
12.9%€14.89€8.48€5.1632
Jul ’23€8.57
€10.33
+20.5%
14.9%€14.69€6.44€4.9131
Jun ’23€7.40
€10.16
+37.3%
15.8%€14.42€6.33€4.9930
May ’23€7.37
€10.48
+42.2%
16.0%€14.00€6.48€6.4630

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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