Zhongsheng Group Holdings Limited

DB:5Z0 Stock Report

Market Cap: €5.0b

Zhongsheng Group Holdings Valuation

Is 5Z0 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 5Z0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5Z0 (€2.06) is trading below our estimate of fair value (€7.85)

Significantly Below Fair Value: 5Z0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5Z0?

Key metric: As 5Z0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5Z0. This is calculated by dividing 5Z0's market cap by their current earnings.
What is 5Z0's PE Ratio?
PE Ratio10.4x
EarningsCN¥3.59b
Market CapCN¥37.45b

Price to Earnings Ratio vs Peers

How does 5Z0's PE Ratio compare to its peers?

The above table shows the PE ratio for 5Z0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.1x
ZAL Zalando
37x21.9%€7.6b
FIE Fielmann Group
23.8x18.9%€3.4b
HBM HORNBACH Baumarkt
24.8xn/a€1.8b
CEC Ceconomy
10.8x22.4%€1.5b
5Z0 Zhongsheng Group Holdings
10.4x16.7%€40.2b

Price-To-Earnings vs Peers: 5Z0 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (24.1x).

Price to Earnings Ratio vs Industry

How does 5Z0's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
5Z0 10.4xIndustry Avg. 16.3xNo. of Companies13PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5Z0 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the European Specialty Retail industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is 5Z0'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.

5Z0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.4x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: 5Z0 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

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 5Z0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.06
€2.23
+8.3%
31.0%€3.63€1.06n/a17
Nov ’25€1.36
€1.62
+18.9%
26.9%€2.43€0.99n/a18
Oct ’25€1.64
€1.56
-5.1%
29.0%€2.40€0.93n/a18
Sep ’25€1.05
€2.00
+90.3%
30.9%€3.29€0.97n/a18
Aug ’25€1.32
€2.13
+61.6%
27.0%€3.32€0.97n/a18
Jul ’25€1.34
€2.25
+68.1%
21.9%€3.34€1.18n/a18
Jun ’25€1.65
€2.23
+35.2%
21.9%€3.30€1.17n/a18
May ’25€1.70
€2.27
+33.4%
21.9%€3.35€1.19n/a18
Apr ’25€1.58
€2.46
+56.0%
29.8%€4.20€1.18n/a19
Mar ’25€1.71
€2.68
+56.5%
36.7%€5.35€1.18n/a18
Feb ’25€1.61
€3.01
+87.0%
30.0%€5.38€1.65n/a18
Jan ’25€2.12
€3.89
+83.5%
26.9%€6.29€1.64n/a18
Dec ’24€2.06
€4.05
+96.4%
26.2%€6.29€1.64n/a18
Nov ’24€2.20
€4.17
+89.4%
26.0%€6.36€1.68€1.3617
Oct ’24€2.62
€4.18
+59.5%
26.0%€6.38€1.68€1.6417
Sep ’24€2.78
€4.36
+56.7%
26.4%€6.47€1.65€1.0519
Aug ’24€3.18
€4.98
+56.6%
25.8%€7.48€2.11€1.3219
Jul ’24€3.46
€5.57
+60.9%
23.1%€7.78€2.13€1.3419
Jun ’24€3.50
€5.82
+66.2%
22.1%€8.01€2.19€1.6519
May ’24€3.90
€5.79
+48.5%
22.0%€7.98€2.18€1.7019
Apr ’24€4.42
€5.91
+33.8%
22.0%€8.15€2.23€1.5819
Mar ’24€4.88
€6.59
+35.0%
24.7%€10.03€3.01€1.7118
Feb ’24€5.40
€7.11
+31.6%
21.8%€10.02€3.57€1.6118
Jan ’24€4.82
€7.01
+45.5%
23.2%€10.88€3.56€2.1217
Dec ’23€5.05
€7.00
+38.5%
22.9%€10.69€3.55€2.0617
Nov ’23€4.06
€7.24
+78.3%
22.3%€10.99€4.02€2.2016

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

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