COSCO SHIPPING Development Co., Ltd.

SEHK:2866 Stock Report

Market Cap: HK$32.3b

COSCO SHIPPING Development Valuation

Is 2866 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 2866 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2866 (HK$1.05) is trading above our estimate of fair value (HK$0.21)

Significantly Below Fair Value: 2866 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2866?

Key metric: As 2866 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2866. This is calculated by dividing 2866's market cap by their current earnings.
What is 2866's PE Ratio?
PE Ratio8.3x
EarningsCN¥1.59b
Market CapCN¥29.98b

Price to Earnings Ratio vs Peers

How does 2866's PE Ratio compare to its peers?

The above table shows the PE ratio for 2866 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.4x
2588 BOC Aviation
5.6x-3.1%HK$42.2b
9878 Huitongda Network
30.5x29.0%HK$10.8b
9930 Horizon Construction Development
4.6x14.6%HK$4.9b
2499 Folangsi
49xn/aHK$3.3b
2866 COSCO SHIPPING Development
8.3x32.4%HK$32.3b

Price-To-Earnings vs Peers: 2866 is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

How does 2866's PE Ratio compare vs other companies in the HK Trade Distributors Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1733 E-Commodities Holdings
1.8xn/aUS$477.88m
1001 Hong Kong Shanghai Alliance Holdings
2.1xn/aUS$21.25m
380 China Pipe Group
1.8xn/aUS$14.71m
1142 E&P Global Holdings
0.7xn/aUS$9.31m
2866 8.3xIndustry Avg. 10.6xNo. of Companies6PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2866 is good value based on its Price-To-Earnings Ratio (8.3x) compared to the Hong Kong Trade Distributors industry average (10.6x).

Price to Earnings Ratio vs Fair Ratio

What is 2866'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.

2866 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: 2866 is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).

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.

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