Guangdong Investment Valuation

Q: What is the Fair Price of GUG0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GUG0 (€28.6) is trading below our estimate of [[fair value]] (€54.99)

Is GUG0 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 GUG0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GUG0 (€28.6) is trading below our estimate of fair value (€54.99)

Significantly Below Fair Value: GUG0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GUG0?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GUG0. This is calculated by dividing GUG0's market cap by their current preferred multiple.
What is GUG0's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

GUG0 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/Revenue	3x
Enterprise Value/EBITDA	9.4x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does GUG0's PE Ratio compare to its peers?

The above table shows the PE ratio for GUG0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	51.8x
FHW Fernheizwerk Neukölln	21.8x	n/a	€55.7m
LEC Lechwerke	25.8x	n/a	€2.5b
WWG Gelsenwasser	14.4x	n/a	€1.7b
ECV Encavis	145.1x	41.8%	€2.8b
GUG0 Guangdong Investment	11.4x	13.9%	€33.0b

Price-To-Earnings vs Peers: GUG0 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (51.8x).

Price to Earnings Ratio vs Industry

How does GUG0's PE Ratio compare vs other companies in the Global Water Utilities Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	12.1%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	12.1%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: GUG0 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the Global Water Utilities industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is GUG0'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.

GUG0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	26.4x

Price-To-Earnings vs Fair Ratio: GUG0 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.4x).

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.