China MeiDong Auto Holdings Limited

BST:55M Stock Report

Market Cap: €357.0m

China MeiDong Auto Holdings Valuation

Is 55M 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 55M when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 55M (€0.26) is trading below our estimate of fair value (€0.83)

Significantly Below Fair Value: 55M is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 55M?

Key metric: As 55M is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 55M. This is calculated by dividing 55M's market cap by their current earnings.
What is 55M's PE Ratio?
PE Ratio36.8x
EarningsCN¥74.21m
Market CapCN¥2.73b

Price to Earnings Ratio vs Peers

How does 55M's PE Ratio compare to its peers?

The above table shows the PE ratio for 55M vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.1x
DEX Delticom
4.9x18.8%€32.3m
HBH HORNBACH Holding KGaA
7.5x6.8%€1.3b
CEC Ceconomy
11.4x22.4%€1.5b
HBM HORNBACH Baumarkt
24.8xn/a€1.9b
55M China MeiDong Auto Holdings
36.8x79.0%€2.9b

Price-To-Earnings vs Peers: 55M is expensive based on its Price-To-Earnings Ratio (36.8x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does 55M's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
55M 36.8xIndustry Avg. 16.0xNo. of Companies11PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 55M is expensive based on its Price-To-Earnings Ratio (36.8x) compared to the European Specialty Retail industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is 55M'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.

55M PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.8x
Fair PE Ratio39.4x

Price-To-Earnings vs Fair Ratio: 55M is good value based on its Price-To-Earnings Ratio (36.8x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).

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 55M forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.26
€0.29
+12.2%
33.1%€0.52€0.19n/a10
Nov ’25€0.26
€0.29
+11.4%
33.1%€0.52€0.19n/a10
Oct ’25€0.32
€0.29
-10.6%
33.1%€0.52€0.19n/a10
Sep ’25€0.20
€0.44
+124.3%
49.9%€0.96€0.22n/a8
Aug ’25€0.22
€0.45
+99.5%
42.5%€0.96€0.27n/a10
Jul ’25€0.24
€0.48
+100.3%
37.8%€0.96€0.35n/a10
Jun ’25€0.29
€0.48
+68.3%
37.8%€0.96€0.35n/a10
May ’25€0.29
€0.54
+84.0%
43.7%€1.04€0.36n/a11
Apr ’25€0.35
€0.58
+66.9%
40.3%€1.03€0.35n/a12
Mar ’25€0.36
€0.65
+83.2%
37.2%€1.03€0.35n/a12
Feb ’25€0.32
€0.69
+117.5%
34.6%€1.04€0.36n/a11
Jan ’25€0.53
€0.85
+60.7%
14.6%€1.03€0.59n/a11
Dec ’24€0.45
€1.02
+125.1%
43.8%€2.40€0.70n/a11
Nov ’24€0.51
€1.10
+118.8%
43.1%€2.42€0.71€0.2611
Oct ’24€0.50
€1.21
+142.4%
42.9%€2.41€0.70€0.3212
Sep ’24€0.67
€1.63
+145.8%
32.6%€2.47€0.90€0.2013
Aug ’24€0.94
€1.87
+99.2%
23.6%€2.53€1.16€0.2213
Jul ’24€1.02
€2.23
+118.3%
13.4%€2.65€1.49€0.2413
Jun ’24€1.17
€2.39
+104.4%
9.0%€2.77€1.96€0.2913
May ’24€1.37
€2.37
+73.0%
8.8%€2.76€1.95€0.2913
Apr ’24€1.92
€2.64
+37.7%
18.8%€4.01€2.00€0.3513
Mar ’24€2.14
€2.90
+35.5%
16.7%€4.01€2.24€0.3614
Feb ’24€2.24
€2.82
+26.0%
20.1%€4.00€1.92€0.3214
Jan ’24€1.90
€3.21
+69.0%
33.0%€5.97€1.90€0.5312
Dec ’23€1.91
€3.32
+73.6%
32.9%€6.17€1.97€0.4512
Nov ’23€1.39
€3.32
+138.5%
32.9%€6.17€1.97€0.5112

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

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