Venus Medtech (Hangzhou) Inc.

SZSC:2500 Stock Report

Market Cap: HK$2.5b

Venus Medtech (Hangzhou) Valuation

Is 2500 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-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.

The above table shows the Price to Sales ratio for 2500. This is calculated by dividing 2500's market cap by their current revenue.
What is 2500's PS Ratio?
PS Ratio5x
SalesCN¥452.11m
Market CapCN¥2.26b

Price to Sales Ratio vs Peers

How does 2500's PS Ratio compare to its peers?

The above table shows the PS ratio for 2500 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
6669 Acotec Scientific Holdings
3.9x21.2%HK$2.1b
3600 Modern Dental Group
1.1x11.5%HK$3.6b
1696 Sisram Medical
0.6x12.8%HK$1.6b
2235 MicroTech Medical (Hangzhou)
6.4x41.0%HK$2.0b
2500 Venus Medtech (Hangzhou)
5x31.9%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 CompaniesPrice / SalesEstimated GrowthMarket Cap
1763 China Isotope & Radiation
0.5xn/aUS$437.24m
1120 Arts Optical International Holdings
0.3xn/aUS$41.20m
1612 Vincent Medical Holdings
0.4x18.0%US$33.57m
2393 Yestar Healthcare Holdings
0.06xn/aUS$21.57m
2500 5.0xIndustry Avg. 3.2xNo. of Companies5PS0246810+
5 CompaniesEstimated GrowthMarket Cap
No more companies

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.

2500 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5x
Fair PS Ratio7.7x

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.


Discover undervalued companies