Waterdrop Inc.

DB:717 Stock Report

Market Cap: €404.8m

Waterdrop Valuation

Is 717 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 717 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 717 (€1.02) is trading below our estimate of fair value (€1.21)

Significantly Below Fair Value: 717 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 717?

Key metric: As 717 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 717. This is calculated by dividing 717's market cap by their current earnings.
What is 717's PE Ratio?
PE Ratio11.4x
EarningsCN¥264.72m
Market CapCN¥3.07b

Price to Earnings Ratio vs Peers

How does 717's PE Ratio compare to its peers?

The above table shows the PE ratio for 717 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.3x
NBG6 NÜRNBERGER Beteiligungs-AG
14.4x38.4%€645.1m
RLV RheinLand Holding
12.5xn/a€115.2m
DFV DFV Deutsche Familienversicherung
22.5xn/a€96.3m
TQM TQM Alpha
15.9x10.3%฿13.5b
717 Waterdrop
11.6x17.8%€420.6m

Price-To-Earnings vs Peers: 717 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does 717's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
717 11.4xIndustry Avg. 11.7xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 717 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Insurance industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is 717'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.

717 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio7.2x

Price-To-Earnings vs Fair Ratio: 717 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (7.2x).

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 717 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.02
€1.60
+56.6%
14.4%€1.77€1.27n/a3
Nov ’25€0.99
€1.60
+60.5%
14.4%€1.77€1.27n/a3
Oct ’25€1.07
€1.54
+44.0%
13.2%€1.75€1.25n/a4
Sep ’25€0.92
€1.63
+77.3%
6.3%€1.72€1.46n/a4
Aug ’25€0.98
€1.66
+68.6%
6.6%€1.76€1.48n/a4
Jul ’25€0.99
€1.67
+68.3%
6.5%€1.77€1.50n/a4
Jun ’25€1.21
€1.69
+40.0%
24.2%€2.21€1.06n/a4
May ’25€1.24
€1.68
+35.3%
28.1%€2.21€1.06n/a3
Apr ’25€1.11
€1.68
+51.7%
27.8%€2.21€1.07n/a3
Mar ’25€1.14
€1.64
+44.0%
34.7%€2.21€1.07n/a2
Feb ’25€0.89
€1.64
+85.6%
34.0%€2.20€1.08n/a2
Jan ’25€0.91
€2.04
+124.0%
34.5%€2.79€1.10n/a3
Dec ’24€1.06
€2.16
+104.1%
35.2%€2.77€1.09n/a3
Nov ’24€0.95
€2.05
+114.7%
34.1%€2.79€1.10€0.994
Oct ’24€1.09
€2.31
+111.9%
18.6%€2.75€1.64€1.074
Sep ’24€1.42
€2.36
+66.2%
20.8%€2.89€1.63€0.924
Aug ’24€1.61
€2.36
+46.5%
21.7%€2.93€1.65€0.984
Jul ’24€1.84
€2.36
+28.2%
21.7%€2.93€1.65€0.994
Jun ’24€2.24
€2.56
+14.5%
24.5%€3.22€1.72€1.214
May ’24€2.50
€2.56
+2.6%
24.5%€3.22€1.72€1.244
Apr ’24€2.60
€2.59
-0.2%
24.2%€3.24€1.73€1.114
Mar ’24€2.86
€2.35
-17.7%
19.4%€3.13€1.75€1.145
Feb ’24€2.78
€2.35
-15.4%
19.4%€3.13€1.75€0.895
Jan ’24€3.02
€2.40
-20.5%
18.5%€3.15€1.82€0.915
Dec ’23€1.48
€2.14
+44.3%
14.3%€2.67€1.79€1.065
Nov ’23€1.25
€2.14
+70.8%
14.3%€2.67€1.79€0.955

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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