China Pipe Group Valuation

Q: What is the Fair Price of 380 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

380 (HK$0.09) is trading below our estimate of [[fair value]] (HK$0.57)

Is 380 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: 380 (HK$0.09) is trading below our estimate of fair value (HK$0.57)

Significantly Below Fair Value: 380 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 380?

Key metric: As 380 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 380. This is calculated by dividing 380's market cap by their current earnings.
What is 380's PE Ratio?
PE Ratio	1.9x
Earnings	HK$64.14m
Market Cap	HK$119.90m

380 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	n/a

Price to Earnings Ratio vs Peers

How does 380's PE Ratio compare to its peers?

The above table shows the PE ratio for 380 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	10.7x
599 E. Bon Holdings	14.9x	n/a	HK$134.4m
1496 AP Rentals Holdings	8.1x	n/a	HK$88.1m
1545 Design Capital	8.5x	n/a	HK$122.0m
387 Leeport (Holdings)	11.5x	n/a	HK$163.4m
380 China Pipe Group	1.9x	n/a	HK$119.9m

Price-To-Earnings vs Peers: 380 is good value based on its Price-To-Earnings Ratio (1.9x) compared to the peer average (10.7x).

Price to Earnings Ratio vs Industry

How does 380's PE Ratio compare vs other companies in the HK Trade Distributors Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	11.5x	6.9%
380 China Pipe Group	1.9x	n/a	US$15.41m
1733 E-Commodities Holdings	1.8x	n/a	US$478.31m
1001 Hong Kong Shanghai Alliance Holdings	2.5x	n/a	US$25.77m

4 Companies		Estimated Growth	Market Cap
Industry Avg.	11.5x	6.9%
380 China Pipe Group	1.9x	n/a	US$15.41m

No more companies

Price-To-Earnings vs Industry: 380 is good value based on its Price-To-Earnings Ratio (1.9x) compared to the Hong Kong Trade Distributors industry average (11.5x).

Price to Earnings Ratio vs Fair Ratio

What is 380'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.

380 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 380's Price-To-Earnings Fair Ratio for valuation analysis.

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.