Shanghai Electric Group Co., Ltd.

SEHK:2727 Stock Report

Market Cap: HK$68.4b

Shanghai Electric Group Valuation

Is 2727 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2727 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2727 (HK$1.89) is trading below our estimate of fair value (HK$4.86)

Significantly Below Fair Value: 2727 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2727?

Other financial metrics that can be useful for relative valuation.

2727 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/Revenue0.8x
Enterprise Value/EBITDA15.7x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does 2727's PE Ratio compare to its peers?

The above table shows the PE ratio for 2727 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.6x
1072 Dongfang Electric
9.6x17.5%HK$52.1b
1133 Harbin Electric
5.7x22.0%HK$6.0b
3808 Sinotruk (Hong Kong)
9.7x12.6%HK$65.8b
1618 Metallurgical Corporation of China
9.3x26.2%HK$70.9b
2727 Shanghai Electric Group
90.1x31.3%HK$68.4b

Price-To-Earnings vs Peers: 2727 is expensive based on its Price-To-Earnings Ratio (90.1x) compared to the peer average (8.6x).


Price to Earnings Ratio vs Industry

How does 2727's PE Ratio compare vs other companies in the Asian Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a43.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a43.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 2727 is expensive based on its Price-To-Earnings Ratio (90.1x) compared to the Asian Electrical industry average (28.3x).


Price to Earnings Ratio vs Fair Ratio

What is 2727'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.

2727 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio90.1x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: 2727 is expensive based on its Price-To-Earnings Ratio (90.1x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).


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 2727 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$1.89
HK$1.77
-6.3%
16.2%HK$2.07HK$1.30n/a4
Sep ’25HK$1.48
HK$1.75
+18.1%
15.7%HK$2.02HK$1.30n/a4
Aug ’25HK$1.55
HK$1.75
+12.8%
15.7%HK$2.02HK$1.30n/a4
Jul ’25HK$1.53
HK$1.85
+20.6%
20.9%HK$2.39HK$1.30n/a4
Jun ’25HK$1.57
HK$1.90
+21.2%
16.6%HK$2.39HK$1.52n/a4
May ’25HK$1.60
HK$2.04
+27.8%
17.7%HK$2.39HK$1.52n/a4
Apr ’25HK$1.52
HK$2.07
+35.9%
17.3%HK$2.40HK$1.52n/a4
Mar ’25HK$1.57
HK$2.08
+32.6%
17.6%HK$2.42HK$1.52n/a4
Feb ’25HK$1.45
HK$2.09
+44.3%
17.0%HK$2.42HK$1.55n/a4
Jan ’25HK$1.63
HK$2.11
+29.5%
17.4%HK$2.46HK$1.56n/a4
Dec ’24HK$1.67
HK$2.22
+32.9%
18.6%HK$2.58HK$1.52n/a4
Nov ’24HK$1.69
HK$2.22
+31.4%
18.6%HK$2.58HK$1.52n/a4
Oct ’24HK$1.83
HK$2.22
+21.2%
18.5%HK$2.58HK$1.52HK$1.754
Sep ’24HK$1.76
HK$2.25
+27.8%
24.3%HK$2.67HK$1.48HK$1.483
Aug ’24HK$1.90
HK$2.22
+17.0%
22.4%HK$2.61HK$1.52HK$1.553
Jul ’24HK$1.83
HK$2.22
+21.5%
22.4%HK$2.61HK$1.52HK$1.533
Jun ’24HK$1.96
HK$2.22
+13.5%
22.4%HK$2.61HK$1.52HK$1.573
May ’24HK$2.12
HK$2.29
+8.0%
19.5%HK$2.68HK$1.55HK$1.604
Apr ’24HK$1.96
HK$2.31
+17.6%
19.0%HK$2.74HK$1.59HK$1.524
Mar ’24HK$1.84
HK$2.28
+24.0%
17.1%HK$2.72HK$1.58HK$1.575
Feb ’24HK$1.89
HK$2.33
+23.4%
18.9%HK$2.78HK$1.62HK$1.454
Jan ’24HK$1.76
HK$2.29
+30.1%
19.6%HK$2.70HK$1.57HK$1.634
Dec ’23HK$1.83
HK$2.13
+16.6%
17.3%HK$2.60HK$1.57HK$1.674
Nov ’23HK$1.57
HK$2.18
+39.2%
19.9%HK$2.61HK$1.58HK$1.694
Oct ’23HK$1.56
HK$2.17
+39.1%
22.2%HK$2.63HK$1.47HK$1.834

Analyst Forecast: Target price is lower than the current share price.


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