FinVolution Group

DB:PP3 Stock Report

Market Cap: €1.6b

FinVolution Group Valuation

Is PP3 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 PP3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PP3 (€5.8) is trading below our estimate of fair value (€19.99)

Significantly Below Fair Value: PP3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PP3?

Key metric: As PP3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PP3. This is calculated by dividing PP3's market cap by their current earnings.
What is PP3's PE Ratio?
PE Ratio5.3x
EarningsCN¥2.23b
Market CapCN¥11.85b

Price to Earnings Ratio vs Peers

How does PP3's PE Ratio compare to its peers?

The above table shows the PE ratio for PP3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.8x
OT8 Eleving Group
9.3x29.7%€190.9m
E4I Multitude
6.2x15.2%€97.1m
FTK flatexDEGIRO
12.4x8.4%€1.4b
HYQ Hypoport
47.1x30.4%€1.4b
PP3 FinVolution Group
5.3x11.7%€1.6b

Price-To-Earnings vs Peers: PP3 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does PP3's PE Ratio compare vs other companies in the European Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PP3 5.3xIndustry Avg. 8.5xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PP3 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the European Consumer Finance industry average (8.2x).

Price to Earnings Ratio vs Fair Ratio

What is PP3'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.

PP3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.3x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: PP3 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

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 PP3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.80
€6.77
+16.7%
11.5%€8.02€5.73n/a7
Nov ’25€5.40
€6.05
+12.1%
8.8%€6.81€5.22n/a7
Oct ’25€5.40
€6.05
+12.1%
8.8%€6.81€5.22n/a7
Sep ’25€4.66
€5.96
+27.9%
9.5%€6.73€5.16n/a6
Aug ’25€5.00
€5.80
+16.1%
9.6%€6.63€4.86n/a7
Jul ’25€4.32
€5.77
+33.5%
9.1%€6.62€4.86n/a8
Jun ’25€4.24
€5.77
+36.1%
9.1%€6.62€4.86n/a8
May ’25€4.42
€5.85
+32.3%
9.3%€6.72€4.95n/a8
Apr ’25€4.54
€5.76
+26.9%
9.3%€6.63€4.88n/a8
Mar ’25€4.72
€5.85
+23.9%
9.5%€6.71€4.95n/a8
Feb ’25€4.34
€5.85
+34.8%
9.5%€6.71€4.95n/a8
Jan ’25€4.34
€5.91
+36.2%
9.5%€6.75€4.99n/a8
Dec ’24€4.08
€5.92
+45.0%
9.7%€6.69€4.94n/a7
Nov ’24€4.36
€6.19
+41.9%
7.0%€6.73€5.61€5.407
Oct ’24€4.66
€6.19
+32.8%
7.0%€6.73€5.61€5.407
Sep ’24€4.52
€6.15
+36.1%
6.6%€6.70€5.59€4.668
Aug ’24€5.30
€5.45
+2.8%
11.0%€6.09€4.19€5.008
Jul ’24€4.22
€5.46
+29.4%
11.1%€6.11€4.35€4.326
Jun ’24€3.64
€5.46
+50.0%
11.1%€6.11€4.35€4.246
May ’24€3.64
€5.66
+55.5%
8.4%€6.24€4.73€4.426
Apr ’24€3.92
€5.66
+44.4%
8.4%€6.24€4.73€4.546
Mar ’24€4.68
€6.14
+31.2%
7.5%€6.63€5.24€4.726
Feb ’24€4.92
€6.09
+23.8%
7.6%€6.57€5.20€4.346
Jan ’24€4.60
€6.02
+30.8%
7.2%€6.61€5.45€4.346
Dec ’23€4.44
€6.02
+35.5%
7.2%€6.61€5.45€4.086
Nov ’23€4.44
€5.73
+29.1%
8.1%€6.22€4.93€4.366

Analyst Forecast: Target price is less than 20% higher than the current share price.

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