Tianqi Lithium Corporation

SZSC:9696 Stock Report

Market Cap: HK$65.7b

Tianqi Lithium Valuation

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$26.75) is trading above our estimate of fair value (HK$24.66)

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 Ratio3.7x
SalesCN¥17.17b
Market CapCN¥61.16b

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
189 Dongyue Group
0.8x10.5%HK$11.9b
6616 Global New Material International Holdings
3x15.6%HK$4.5b
336 Huabao International Holdings
2xn/aHK$7.3b
3318 China Boton Group
0.8x14.9%HK$1.7b
9696 Tianqi Lithium
3.7x5.6%HK$61.2b

Price-To-Sales vs Peers: 9696 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

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

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
827 Ko Yo Chemical (Group)
0.08xn/aUS$30.98m
1047 Ngai Hing Hong
0.09xn/aUS$15.42m
No more companies available in this PS range
9696 3.7xIndustry Avg. 0.4xNo. of Companies7PS00.40.81.21.62+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 9696 is expensive based on its Price-To-Sales Ratio (3.7x) 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 Ratio3.7x
Fair PS Ratio2.2x

Price-To-Sales vs Fair Ratio: 9696 is expensive based on its Price-To-Sales Ratio (3.7x) 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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