China Mengniu Dairy Company Limited

DB:EZQ0 Stock Report

Market Cap: €8.2b

China Mengniu Dairy Valuation

Is EZQ0 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 EZQ0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EZQ0 (€19.9) is trading below our estimate of fair value (€46.06)

Significantly Below Fair Value: EZQ0 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for EZQ0?

Other financial metrics that can be useful for relative valuation.

EZQ0 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/Revenue0.9x
Enterprise Value/EBITDA10.8x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does EZQ0's PE Ratio compare to its peers?

The above table shows the PE ratio for EZQ0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
SZU Südzucker
6.8x-5.9%€2.3b
SSH Südwestdeutsche Salzwerke
16.3xn/a€683.0m
NLM FRoSTA
12.2xn/a€412.2m
KWS KWS SAAT SE KGaA
11.5x0.6%€2.1b
EZQ0 China Mengniu Dairy
15x11.0%€69.8b

Price-To-Earnings vs Peers: EZQ0 is expensive based on its Price-To-Earnings Ratio (15x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does EZQ0's PE Ratio compare vs other companies in the European Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: EZQ0 is expensive based on its Price-To-Earnings Ratio (15x) compared to the European Food industry average (14.5x).


Price to Earnings Ratio vs Fair Ratio

What is EZQ0'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.

EZQ0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: EZQ0 is good value based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).


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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