Bank of Qingdao Valuation

Q: What is the Fair Price of 3866 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3866 (HK$2.74) is trading below our estimate of [[fair value]] (HK$6.77)

Is 3866 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 3866 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3866 (HK$2.74) is trading below our estimate of fair value (HK$6.77)

Significantly Below Fair Value: 3866 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3866?

Key metric: As 3866 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3866. This is calculated by dividing 3866's market cap by their current earnings.
What is 3866's PE Ratio?
PE Ratio	4.2x
Earnings	CN¥3.55b
Market Cap	CN¥19.03b

3866 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 3866's PE Ratio compare to its peers?

The above table shows the PE ratio for 3866 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	5.9x
6199 Bank of Guizhou	5.6x	n/a	HK$20.9b
9677 Weihai City Commercial Bank	9.1x	n/a	HK$17.0b
1963 Bank of Chongqing	3.9x	n/a	HK$28.3b
9889 Dongguan Rural Commercial Bank	4.9x	n/a	HK$24.5b
3866 Bank of Qingdao	4.2x	12.9%	HK$20.5b

Price-To-Earnings vs Peers: 3866 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (5.9x).

Price to Earnings Ratio vs Industry

How does 3866's PE Ratio compare vs other companies in the HK Banks Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3866 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the Hong Kong Banks industry average (4.8x).

Price to Earnings Ratio vs Fair Ratio

What is 3866'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.

3866 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.2x
Fair PE Ratio	4.6x

Price-To-Earnings vs Fair Ratio: 3866 is good value based on its Price-To-Earnings Ratio (4.2x) compared to the estimated Fair Price-To-Earnings Ratio (4.6x).

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.

Discover undervalued companies

China Construction Bank

HK$1.5t

Engages in the provision of various banking and related financial services to individuals and corporate customers in the People's Republic of China and internationally.

939

HK$5.95

1.9%

28.2%

Bank of Qingdao

HK$20.5b

Provides various banking products and services in the People’s Republic of China.

3866

HK$2.74

1.5%

35.6%

China Zheshang Bank

HK$80.4b

Provides various commercial banking products and services in Mainland China.

2016

HK$2.17

1.4%

5.3%