Huatai Securities Co., Ltd.

SHSC:6886 Stock Report

Market Cap: HK$158.1b

Huatai Securities Valuation

Is 6886 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 6886 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6886 (HK$12.96) is trading below our estimate of fair value (HK$14.1)

Significantly Below Fair Value: 6886 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6886?

Key metric: As 6886 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6886. This is calculated by dividing 6886's market cap by their current earnings.
What is 6886's PE Ratio?
PE Ratio10.4x
EarningsCN¥15.10b
Market CapCN¥147.24b

Price to Earnings Ratio vs Peers

How does 6886's PE Ratio compare to its peers?

The above table shows the PE ratio for 6886 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.5x
6881 China Galaxy Securities
9.7x9.8%HK$143.1b
3908 China International Capital
16x25.6%HK$134.4b
6066 CSC Financial
15.6x38.6%HK$201.2b
1456 Guolian Securities
32.7x44.8%HK$32.7b
6886 Huatai Securities
10.4x2.7%HK$147.2b

Price-To-Earnings vs Peers: 6886 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (18.5x).

Price to Earnings Ratio vs Industry

How does 6886's PE Ratio compare vs other companies in the HK Capital Markets Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2799 China CITIC Financial Asset Management
4.2x-29.2%US$6.60b
8098 CL Group (Holdings)
3.7xn/aUS$11.02m
No more companies available in this PE range
6886 10.4xIndustry Avg. 18.6xNo. of Companies7PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6886 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the Hong Kong Capital Markets industry average (18.6x).

Price to Earnings Ratio vs Fair Ratio

What is 6886'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.

6886 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.4x
Fair PE Ratio11.1x

Price-To-Earnings vs Fair Ratio: 6886 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.1x).

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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