Perennial Energy Holdings Valuation

Q: What is the Fair Price of 2798 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2798 (HK$1.03) is trading above our estimate of [[fair value]] (HK$0.76)

Is 2798 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 2798 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2798 (HK$1.03) is trading above our estimate of fair value (HK$0.76)

Significantly Below Fair Value: 2798 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2798?

Key metric: As 2798 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2798. This is calculated by dividing 2798's market cap by their current earnings.
What is 2798's PE Ratio?
PE Ratio	2.5x
Earnings	CN¥611.00m
Market Cap	CN¥1.61b

2798 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	1.3x
Enterprise Value/EBITDA	2.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2798's PE Ratio compare to its peers?

The above table shows the PE ratio for 2798 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	6.2x
3788 China Hanking Holdings	6.2x	n/a	HK$1.5b
103 Shougang Century Holdings	11.4x	n/a	HK$881.3m
1553 Maike Tube Industry Holdings	3.8x	n/a	HK$659.4m
1118 Golik Holdings	3.6x	n/a	HK$488.2m
2798 Perennial Energy Holdings	2.5x	n/a	HK$1.7b

Price-To-Earnings vs Peers: 2798 is good value based on its Price-To-Earnings Ratio (2.5x) compared to the peer average (6.2x).

Price to Earnings Ratio vs Industry

How does 2798's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
6890 KangLi International Holdings	1.7x	n/a	US$29.21m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2798 is good value based on its Price-To-Earnings Ratio (2.5x) compared to the Hong Kong Metals and Mining industry average (9.9x).

Price to Earnings Ratio vs Fair Ratio

What is 2798'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.

2798 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2798'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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