CSSC (Hong Kong) Shipping Valuation

Q: What is the Fair Price of 3877 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

3877 (HK$1.58) is trading below our estimate of [[fair value]] (HK$2.43)

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

Below Fair Value: 3877 (HK$1.58) 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 Ratio	4.5x
Earnings	HK$2.14b
Market Cap	HK$9.74b

3877 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	0.6x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	9.4x
2666 Genertec Universal Medical Group	4x	6.8%	HK$8.8b
1905 Haitong Unitrust International Financial Leasing	4.3x	n/a	HK$6.9b
6069 SY Holdings Group	25.8x	28.1%	HK$6.9b
1606 China Development Bank Financial Leasing	3.4x	7.9%	HK$14.8b
3877 CSSC (Hong Kong) Shipping	4.5x	7.3%	HK$9.7b

Price-To-Earnings vs Peers: 3877 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the peer average (9.3x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 3877 is good value based on its Price-To-Earnings Ratio (4.5x) compared to the Hong Kong Diversified Financial industry average (8.7x).

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 Ratio	4.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3877'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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