Wisdom Education International Holdings Valuation

Is 6068 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 6068 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6068 (HK$0.15) is trading below our estimate of fair value (HK$1.1)

Significantly Below Fair Value: 6068 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6068?

Key metric: As 6068 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6068. This is calculated by dividing 6068's market cap by their current earnings.
What is 6068's PE Ratio?
PE Ratio	2x
Earnings	CN¥155.32m
Market Cap	CN¥307.13m

6068 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	1.6x
Enterprise Value/EBITDA	3.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6068's PE Ratio compare to its peers?

The above table shows the PE ratio for 6068 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	9.5x
1565 Virscend Education	14.2x	n/a	HK$614.7m
6913 South China Vocational Education Group	3.4x	n/a	HK$413.5m
1851 China Gingko Education Group	1.8x	n/a	HK$325.0m
3978 China Beststudy Education Group	18.7x	42.3%	HK$2.5b
6068 Wisdom Education International Holdings	2x	n/a	HK$329.7m

Price-To-Earnings vs Peers: 6068 is good value based on its Price-To-Earnings Ratio (2x) compared to the peer average (9.5x).

Price to Earnings Ratio vs Industry

How does 6068's PE Ratio compare vs other companies in the HK Consumer Services Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
8341 Aeso Holding	1.5x	n/a	US$1.54m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 6068 is good value based on its Price-To-Earnings Ratio (2x) compared to the Hong Kong Consumer Services industry average (6.5x).

Price to Earnings Ratio vs Fair Ratio

What is 6068'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.

6068 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6068'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.