China Education Group Holdings Limited

SEHK:839 Stock Report

Market Cap: HK$11.5b

China Education Group Holdings Valuation

Is 839 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 839 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 839 (HK$4.24) is trading below our estimate of fair value (HK$8.31)

Significantly Below Fair Value: 839 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 839?

Other financial metrics that can be useful for relative valuation.

839 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/Revenue2.8x
Enterprise Value/EBITDA5.6x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does 839's PE Ratio compare to its peers?

The above table shows the PE ratio for 839 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
2469 Fenbi
32.1x43.0%HK$6.5b
1969 China Chunlai Education Group
6.6xn/aHK$5.2b
1773 Tianli International Holdings
18.3x31.5%HK$8.9b
667 China East Education Holdings
16.6x19.4%HK$4.9b
839 China Education Group Holdings
7.3x15.3%HK$11.4b

Price-To-Earnings vs Peers: 839 is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (18.4x).


Price to Earnings Ratio vs Industry

How does 839's PE Ratio compare vs other companies in the HK Consumer Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 839 is expensive based on its Price-To-Earnings Ratio (7.3x) compared to the Hong Kong Consumer Services industry average (6.5x).


Price to Earnings Ratio vs Fair Ratio

What is 839'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.

839 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: 839 is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).


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 839 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.24
HK$7.23
+70.5%
28.0%HK$11.44HK$2.10n/a15
Jul ’25HK$4.51
HK$7.23
+60.3%
28.0%HK$11.44HK$2.10n/a15
Jun ’25HK$5.07
HK$7.25
+43.0%
28.0%HK$11.47HK$2.11n/a15
May ’25HK$4.47
HK$7.11
+59.0%
29.9%HK$11.52HK$2.10n/a15
Apr ’25HK$4.19
HK$8.10
+93.4%
31.5%HK$12.39HK$2.10n/a15
Mar ’25HK$4.71
HK$8.36
+77.6%
32.5%HK$12.52HK$2.12n/a15
Feb ’25HK$3.96
HK$8.36
+111.2%
32.5%HK$12.52HK$2.12n/a15
Jan ’25HK$4.90
HK$8.66
+76.8%
31.2%HK$12.63HK$2.14n/a15
Dec ’24HK$4.77
HK$9.71
+103.5%
19.5%HK$12.55HK$5.71n/a15
Nov ’24HK$6.53
HK$11.29
+72.9%
25.6%HK$20.19HK$8.68n/a15
Oct ’24HK$6.37
HK$11.32
+77.8%
25.3%HK$20.17HK$8.67n/a15
Sep ’24HK$6.67
HK$11.42
+71.3%
24.4%HK$20.37HK$8.76n/a16
Aug ’24HK$7.07
HK$11.37
+60.9%
24.6%HK$20.46HK$8.80n/a16
Jul ’24HK$6.10
HK$11.34
+85.9%
23.9%HK$20.37HK$8.76HK$4.5117
Jun ’24HK$6.40
HK$11.53
+80.2%
24.5%HK$20.86HK$8.77HK$5.0717
May ’24HK$6.96
HK$12.39
+78.0%
23.3%HK$21.40HK$9.50HK$4.4717
Apr ’24HK$7.56
HK$13.06
+72.8%
21.9%HK$22.14HK$9.83HK$4.1917
Mar ’24HK$9.54
HK$13.18
+38.1%
21.5%HK$22.15HK$9.84HK$4.7117
Feb ’24HK$12.40
HK$13.03
+5.1%
22.2%HK$22.49HK$9.99HK$3.9617
Jan ’24HK$10.10
HK$11.79
+16.7%
23.7%HK$21.93HK$9.33HK$4.9019
Dec ’23HK$8.22
HK$11.44
+39.1%
26.0%HK$21.46HK$7.51HK$4.7718
Nov ’23HK$4.82
HK$10.62
+120.2%
32.3%HK$22.94HK$7.35HK$6.5319
Oct ’23HK$5.81
HK$10.45
+79.9%
30.3%HK$21.55HK$7.43HK$6.3720
Sep ’23HK$6.86
HK$10.69
+55.9%
30.1%HK$22.25HK$7.67HK$6.6720
Aug ’23HK$6.60
HK$11.10
+68.2%
29.9%HK$22.81HK$7.87HK$7.0719
Jul ’23HK$7.76
HK$11.46
+47.7%
31.0%HK$22.88HK$7.89HK$6.1020

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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