Venus Medtech (Hangzhou) Valuation
Is 2500 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of 2500 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 2500 (HK$5.62) is trading below our estimate of fair value (HK$7.34)
Significantly Below Fair Value: 2500 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 2500?
Key metric: As 2500 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is 2500's PS Ratio? | |
|---|---|
| PS Ratio | 5x |
| Sales | CN¥452.11m |
| Market Cap | CN¥2.26b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.8x |
| Enterprise Value/EBITDA | -2.4x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does 2500's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 2.9x | ||
6669 Acotec Scientific Holdings | 4x | 21.2% | HK$2.3b |
3600 Modern Dental Group | 1x | 11.5% | HK$3.3b |
1696 Sisram Medical | 0.5x | 12.8% | HK$1.5b |
2235 MicroTech Medical (Hangzhou) | 6x | 41.0% | HK$1.9b |
2500 Venus Medtech (Hangzhou) | 5x | 31.9% | HK$2.5b |
Price-To-Sales vs Peers: 2500 is expensive based on its Price-To-Sales Ratio (5x) compared to the peer average (4.2x).
Price to Sales Ratio vs Industry
How does 2500's PS Ratio compare vs other companies in the HK Medical Equipment Industry?
| 5 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
1763 China Isotope & Radiation | 0.5x | n/a | US$435.58m |
1120 Arts Optical International Holdings | 0.3x | n/a | US$41.19m |
1612 Vincent Medical Holdings | 0.4x | 18.0% | US$33.57m |
2393 Yestar Healthcare Holdings | 0.06x | n/a | US$20.67m |
| 5 Companies | Estimated Growth | Market Cap |
|---|
Price-To-Sales vs Industry: 2500 is expensive based on its Price-To-Sales Ratio (5x) compared to the Hong Kong Medical Equipment industry average (3.3x).
Price to Sales Ratio vs Fair Ratio
What is 2500's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 5x |
| Fair PS Ratio | 7.7x |
Price-To-Sales vs Fair Ratio: 2500 is good value based on its Price-To-Sales Ratio (5x) compared to the estimated Fair Price-To-Sales Ratio (7.7x).
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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