Northeast Electric Development Company Limited

SEHK:42 Stock Report

Market Cap: HK$262.0m

Northeast Electric Development Valuation

Is 42 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: Insufficient data to calculate 42's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 42's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 42?

Key metric: As 42 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 42. This is calculated by dividing 42's market cap by their current earnings.
What is 42's PE Ratio?
PE Ratio39.5x
EarningsCN¥6.18m
Market CapCN¥243.95m

Price to Earnings Ratio vs Peers

How does 42's PE Ratio compare to its peers?

The above table shows the PE ratio for 42 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.9x
8115 Shanghai Qingpu Fire-Fighting Equipment
23.2xn/aHK$247.4m
1399 Veson Holdings
5xn/aHK$215.8m
1685 Boer Power Holdings
3.7xn/aHK$116.1m
505 Xingye Alloy Materials Group
3.7xn/aHK$866.1m
42 Northeast Electric Development
39.5xn/aHK$262.0m

Price-To-Earnings vs Peers: 42 is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the peer average (8.9x).

Price to Earnings Ratio vs Industry

How does 42's PE Ratio compare vs other companies in the Asian Electrical Industry?

24 CompaniesPrice / EarningsEstimated GrowthMarket Cap
42 39.5xIndustry Avg. 28.2xNo. of Companies73PE020406080100+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 42 is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the Asian Electrical industry average (28.2x).

Price to Earnings Ratio vs Fair Ratio

What is 42'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.

42 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 42'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.

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