CSSC (Hong Kong) Shipping Company Limited

SEHK:3877 Stock Report

Market Cap: HK$10.0b

CSSC (Hong Kong) Shipping Valuation

Is 3877 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 3877 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3877 (HK$1.62) is trading below our estimate of fair value (HK$2.43)

Significantly Below Fair Value: 3877 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3877?

Key metric: As 3877 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3877. This is calculated by dividing 3877's market cap by their current earnings.
What is 3877's PE Ratio?
PE Ratio4.7x
EarningsHK$2.14b
Market CapHK$9.98b

Price to Earnings Ratio vs Peers

How does 3877's PE Ratio compare to its peers?

The above table shows the PE ratio for 3877 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.7x
2666 Genertec Universal Medical Group
4.1x6.8%HK$9.2b
1905 Haitong Unitrust International Financial Leasing
4.3xn/aHK$6.9b
6069 SY Holdings Group
26.8x28.1%HK$7.2b
1606 China Development Bank Financial Leasing
3.6x7.9%HK$15.6b
3877 CSSC (Hong Kong) Shipping
4.7x7.3%HK$10.0b

Price-To-Earnings vs Peers: 3877 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the peer average (9.7x).


Price to Earnings Ratio vs Industry

How does 3877's PE Ratio compare vs other companies in the HK Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
3877 4.7xIndustry Avg. 9.4xNo. of Companies10PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3877 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the Hong Kong Diversified Financial industry average (9x).


Price to Earnings Ratio vs Fair Ratio

What is 3877'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.

3877 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.7x
Fair PE Ratio7.8x

Price-To-Earnings vs Fair Ratio: 3877 is good value based on its Price-To-Earnings Ratio (4.7x) compared to the estimated Fair Price-To-Earnings Ratio (7.8x).


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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