China Water Affairs Group Limited

DB:CUBB Stock Report

Market Cap: €869.2m

China Water Affairs Group Valuation

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

Below Fair Value: CUBB (€0.52) is trading below our estimate of fair value (€0.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CUBB. This is calculated by dividing CUBB's market cap by their current earnings.
What is CUBB's PE Ratio?
PE Ratio4.6x
EarningsHK$1.53b
Market CapHK$7.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CUBB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.5x
FHW Fernheizwerk Neukölln
21.8xn/a€54.7m
MNV6 Mainova
33.7xn/a€1.9b
WWG Gelsenwasser
14xn/a€1.8b
MVV1 MVV Energie
12.3xn/a€2.0b
CUBB China Water Affairs Group
4.6x2.4%€7.1b

Price-To-Earnings vs Peers: CUBB is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

How does CUBB's PE Ratio compare vs other companies in the Global Water Utilities Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CUBB 4.6xIndustry Avg. 17.8xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CUBB is good value based on its Price-To-Earnings Ratio (4.6x) compared to the Global Water Utilities industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is CUBB'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.

CUBB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.6x
Fair PE Ratio21.2x

Price-To-Earnings vs Fair Ratio: CUBB is good value based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).

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 CUBB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.52
€0.73
+39.9%
1.2%€0.74€0.72n/a2
Nov ’25€0.55
€0.71
+28.2%
2.9%€0.73€0.69n/a2
Oct ’25€0.59
€0.71
+19.3%
2.9%€0.73€0.69n/a2
Sep ’25€0.53
€0.72
+37.2%
2.9%€0.74€0.70n/a2
Aug ’25€0.60
€0.72
+20.1%
2.9%€0.74€0.70n/a2
Jul ’25€0.59
€0.83
+40.8%
2.9%€0.85€0.80n/a2
Jun ’25€0.67
€0.83
+23.2%
2.9%€0.85€0.80n/a2
May ’25€0.57
€0.83
+44.7%
2.9%€0.85€0.80n/a2
Apr ’25€0.55
€0.81
+46.8%
2.2%€0.83€0.79n/a2
Mar ’25€0.60
€0.81
+35.2%
2.2%€0.83€0.79n/a2
Feb ’25€0.48
€0.81
+67.9%
2.2%€0.83€0.79n/a2
Jan ’25€0.51
€0.90
+77.1%
13.5%€1.07€0.79n/a3
Dec ’24€0.52
€0.96
+84.7%
10.8%€1.05€0.82n/a3
Nov ’24€0.59
€1.02
+73.8%
7.2%€1.09€0.92€0.553
Oct ’24€0.61
€1.04
+69.7%
1.2%€1.05€1.02€0.593
Sep ’24€0.69
€1.04
+49.1%
1.2%€1.05€1.02€0.533
Aug ’24€0.78
€1.04
+33.6%
1.2%€1.05€1.02€0.603
Jul ’24€0.71
€1.06
+50.8%
3.2%€1.11€1.03€0.593
Jun ’24€0.70
€1.09
+55.0%
3.1%€1.12€1.04€0.673
May ’24€0.74
€1.09
+46.9%
3.1%€1.12€1.04€0.573
Apr ’24€0.76
€1.13
+48.5%
2.7%€1.17€1.08€0.554
Mar ’24€0.85
€1.13
+33.8%
2.7%€1.17€1.08€0.604
Feb ’24€0.82
€1.07
+31.1%
7.2%€1.14€0.96€0.483
Jan ’24€0.76
€1.20
+57.2%
11.3%€1.38€0.99€0.515
Dec ’23€0.75
€1.24
+65.6%
11.0%€1.40€1.00€0.525
Nov ’23€0.72
€1.43
+97.0%
5.3%€1.55€1.33€0.595

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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