Tianqi Lithium Valuation

Q: What is the Fair Price of 9696 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

9696 (HK$27) is trading above our estimate of [[fair value]] (HK$24.24)

Is 9696 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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 9696 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9696 (HK$27) is trading above our estimate of fair value (HK$24.24)

Significantly Below Fair Value: 9696 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9696?

Key metric: As 9696 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 9696. This is calculated by dividing 9696's market cap by their current revenue.
What is 9696's PS Ratio?
PS Ratio	3.8x
Sales	CN¥17.17b
Market Cap	CN¥62.86b

9696 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	4.5x
Enterprise Value/EBITDA	7.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 9696's PS Ratio compare to its peers?

The above table shows the PS ratio for 9696 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.6x
189 Dongyue Group	0.7x	10.5%	HK$11.0b
6616 Global New Material International Holdings	3x	15.6%	HK$4.5b
336 Huabao International Holdings	2x	n/a	HK$7.3b
3318 China Boton Group	0.8x	14.9%	HK$1.7b
9696 Tianqi Lithium	3.8x	5.6%	HK$62.9b

Price-To-Sales vs Peers: 9696 is expensive based on its Price-To-Sales Ratio (3.8x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does 9696's PS Ratio compare vs other companies in the HK Chemicals Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
827 Ko Yo Chemical (Group)	0.08x	n/a	US$34.07m
1047 Ngai Hing Hong	0.09x	n/a	US$15.18m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 9696 is expensive based on its Price-To-Sales Ratio (3.8x) compared to the Hong Kong Chemicals industry average (0.4x).

Price to Sales Ratio vs Fair Ratio

What is 9696'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.

9696 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.8x
Fair PS Ratio	2.2x

Price-To-Sales vs Fair Ratio: 9696 is expensive based on its Price-To-Sales Ratio (3.8x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).

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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