China Literature Limited

SEHK:772 Stock Report

Market Cap: HK$28.4b

China Literature Valuation

Is 772 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 772 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 772 (HK$27.75) is trading below our estimate of fair value (HK$56.26)

Significantly Below Fair Value: 772 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 772?

Other financial metrics that can be useful for relative valuation.

772 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/Revenue2.9x
Enterprise Value/EBITDA23.3x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does 772's PE Ratio compare to its peers?

The above table shows the PE ratio for 772 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.4x
811 Xinhua Winshare Publishing and Media
5.8x-0.7%HK$15.8b
18 Oriental Enterprise Holdings
7xn/aHK$791.3m
3888 Kingsoft
63.9x35.7%HK$32.2b
9899 Cloud Music
24.8x17.8%HK$19.7b
772 China Literature
32.6x16.0%HK$28.4b

Price-To-Earnings vs Peers: 772 is expensive based on its Price-To-Earnings Ratio (32.6x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

How does 772's PE Ratio compare vs other companies in the HK Media Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 772 is expensive based on its Price-To-Earnings Ratio (32.6x) compared to the Hong Kong Media industry average (10x).


Price to Earnings Ratio vs Fair Ratio

What is 772'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.

772 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.6x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: 772 is expensive based on its Price-To-Earnings Ratio (32.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 772 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$27.75
HK$33.66
+21.3%
18.0%HK$46.68HK$22.92n/a13
Apr ’25HK$26.15
HK$34.81
+33.1%
20.0%HK$48.27HK$23.00n/a14
Mar ’25HK$24.70
HK$33.72
+36.5%
19.4%HK$48.31HK$24.00n/a14
Feb ’25HK$24.35
HK$41.77
+71.5%
12.9%HK$50.96HK$32.14n/a15
Jan ’25HK$29.05
HK$41.44
+42.7%
12.9%HK$50.97HK$32.15n/a16
Dec ’24HK$26.80
HK$40.29
+50.3%
11.9%HK$47.60HK$31.65n/a15
Nov ’24HK$25.35
HK$40.47
+59.7%
11.1%HK$47.49HK$31.58n/a15
Oct ’24HK$28.65
HK$41.13
+43.6%
11.7%HK$49.09HK$31.68n/a16
Sep ’24HK$31.50
HK$41.88
+32.9%
11.6%HK$49.48HK$31.93n/a16
Aug ’24HK$34.65
HK$42.72
+23.3%
12.8%HK$53.48HK$31.94n/a16
Jul ’24HK$32.95
HK$43.03
+30.6%
14.3%HK$53.02HK$33.19n/a16
Jun ’24HK$29.65
HK$45.30
+52.8%
13.7%HK$56.01HK$35.06n/a15
May ’24HK$36.00
HK$45.30
+25.8%
13.7%HK$56.01HK$35.06n/a15
Apr ’24HK$40.50
HK$44.55
+10.0%
12.8%HK$53.12HK$35.08HK$26.1514
Mar ’24HK$36.65
HK$46.23
+26.1%
25.3%HK$85.83HK$37.72HK$24.7015
Feb ’24HK$41.80
HK$47.36
+13.3%
25.2%HK$87.99HK$38.68HK$24.3515
Jan ’24HK$30.30
HK$43.12
+42.3%
28.4%HK$84.61HK$28.99HK$29.0515
Dec ’23HK$27.30
HK$42.52
+55.7%
28.5%HK$83.73HK$28.69HK$26.8015
Nov ’23HK$22.35
HK$41.37
+85.1%
27.6%HK$81.81HK$28.03HK$25.3516
Oct ’23HK$22.25
HK$43.12
+93.8%
26.1%HK$85.91HK$29.44HK$28.6519
Sep ’23HK$31.30
HK$43.27
+38.3%
26.0%HK$86.34HK$29.58HK$31.5019
Aug ’23HK$30.30
HK$46.13
+52.3%
25.4%HK$83.24HK$28.92HK$34.6518
Jul ’23HK$37.90
HK$46.35
+22.3%
26.7%HK$83.80HK$29.11HK$32.9518
Jun ’23HK$33.85
HK$46.41
+37.1%
26.7%HK$83.94HK$29.16HK$29.6518
May ’23HK$33.70
HK$49.33
+46.4%
26.9%HK$86.36HK$30.00HK$36.0020
Apr ’23HK$32.15
HK$53.72
+67.1%
26.5%HK$88.40HK$33.16HK$40.5019

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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