China Resources Beer (Holdings) Company Limited

SEHK:291 Stock Report

Market Cap: HK$116.0b

China Resources Beer (Holdings) Valuation

Is 291 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: 291 (HK$35.3) is trading below our estimate of fair value (HK$47.62)

Significantly Below Fair Value: 291 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 291?

Other financial metrics that can be useful for relative valuation.

291 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/EBITDA17.9x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does 291's PE Ratio compare to its peers?

The above table shows the PE ratio for 291 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.5x
168 Tsingtao Brewery
15.3x9.8%HK$100.2b
1876 Budweiser Brewing Company APAC
22.7x12.8%HK$155.0b
2319 China Mengniu Dairy
12.9x17.0%HK$74.6b
288 WH Group
15.1x16.7%HK$72.8b
291 China Resources Beer (Holdings)
20.5x12.6%HK$116.0b

Price-To-Earnings vs Peers: 291 is expensive based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (16.5x).


Price to Earnings Ratio vs Industry

How does 291's PE Ratio compare vs other companies in the Asian Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 291 is good value based on its Price-To-Earnings Ratio (20.5x) compared to the Asian Beverage industry average (22.4x).


Price to Earnings Ratio vs Fair Ratio

What is 291'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.

291 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: 291 is expensive based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).


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 291 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$35.30
HK$49.83
+41.2%
17.4%HK$72.50HK$33.00n/a30
Mar ’25HK$33.40
HK$51.60
+54.5%
22.7%HK$74.80HK$28.60n/a32
Feb ’25HK$29.40
HK$53.26
+81.1%
22.5%HK$74.80HK$28.60n/a30
Jan ’25HK$34.20
HK$62.25
+82.0%
15.8%HK$84.00HK$39.00n/a30
Dec ’24HK$34.75
HK$63.26
+82.0%
14.2%HK$84.00HK$39.00n/a29
Nov ’24HK$41.10
HK$64.90
+57.9%
13.4%HK$84.00HK$40.50n/a29
Oct ’24HK$42.95
HK$66.64
+55.2%
13.4%HK$84.00HK$40.50n/a32
Sep ’24HK$46.10
HK$66.81
+44.9%
13.1%HK$84.00HK$40.50n/a33
Aug ’24HK$48.80
HK$72.40
+48.4%
9.1%HK$80.40HK$49.00n/a33
Jul ’24HK$51.60
HK$73.54
+42.5%
9.0%HK$83.00HK$49.00n/a33
Jun ’24HK$48.15
HK$73.99
+53.7%
8.8%HK$83.00HK$49.00n/a33
May ’24HK$60.35
HK$73.73
+22.2%
8.8%HK$83.00HK$49.00n/a33
Apr ’24HK$63.00
HK$73.73
+17.0%
8.8%HK$83.00HK$49.00n/a33
Mar ’24HK$62.65
HK$69.92
+11.6%
10.3%HK$83.00HK$45.00HK$33.4030
Feb ’24HK$59.60
HK$68.77
+15.4%
10.2%HK$83.00HK$45.00HK$29.4030
Jan ’24HK$54.55
HK$66.63
+22.1%
12.1%HK$83.00HK$45.00HK$34.2030
Dec ’23HK$54.25
HK$66.86
+23.3%
12.4%HK$83.00HK$45.00HK$34.7530
Nov ’23HK$40.80
HK$67.25
+64.8%
12.0%HK$83.00HK$45.00HK$41.1030
Oct ’23HK$54.65
HK$67.82
+24.1%
11.2%HK$83.00HK$45.00HK$42.9532
Sep ’23HK$52.15
HK$67.54
+29.5%
11.2%HK$83.00HK$45.00HK$46.1032
Aug ’23HK$55.30
HK$65.04
+17.6%
13.6%HK$80.00HK$41.00HK$48.8031
Jul ’23HK$58.50
HK$65.07
+11.2%
15.1%HK$83.50HK$41.00HK$51.6031
Jun ’23HK$48.40
HK$65.60
+35.5%
15.4%HK$83.50HK$41.00HK$48.1531
May ’23HK$46.50
HK$66.54
+43.1%
15.3%HK$83.50HK$41.00HK$60.3531
Apr ’23HK$48.70
HK$67.30
+38.2%
15.5%HK$83.50HK$41.00HK$63.0030
Mar ’23HK$63.70
HK$74.38
+16.8%
14.5%HK$90.00HK$44.70HK$62.6529

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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