China Resources Beverage (Holdings) Valuation

Q: What is the Fair Price of 2460 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2460 (HK$11.56) is trading below our estimate of [[fair value]] (HK$40.62)

Is 2460 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 2460 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2460 (HK$11.56) is trading below our estimate of fair value (HK$40.62)

Significantly Below Fair Value: 2460 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2460?

Key metric: As 2460 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2460. This is calculated by dividing 2460's market cap by their current earnings.
What is 2460's PE Ratio?
PE Ratio	19x
Earnings	CN¥1.33b
Market Cap	CN¥25.27b

2460 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	10.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2460's PE Ratio compare to its peers?

The above table shows the PE ratio for 2460 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	15.8x
506 China Foods	7.8x	8.0%	HK$6.7b
9633 Nongfu Spring	26.4x	10.3%	HK$355.4b
6979 ZJLD Group	13.5x	21.1%	HK$21.6b
220 Uni-President China Holdings	15.4x	7.9%	HK$29.0b
2460 China Resources Beverage (Holdings)	19x	n/a	HK$27.1b

Price-To-Earnings vs Peers: 2460 is expensive based on its Price-To-Earnings Ratio (19x) compared to the peer average (15.8x).

Price to Earnings Ratio vs Industry

How does 2460's PE Ratio compare vs other companies in the Asian Beverage Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2460 is expensive based on its Price-To-Earnings Ratio (19x) compared to the Asian Beverage industry average (18.8x).

Price to Earnings Ratio vs Fair Ratio

What is 2460'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.

2460 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2460'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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