Baidu Valuation

Is 89888 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 89888 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 89888 (CN¥78.1) is trading below our estimate of fair value (CN¥200.14)

Significantly Below Fair Value: 89888 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 89888?

Key metric: As 89888 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 89888. This is calculated by dividing 89888's market cap by their current earnings.
What is 89888's PE Ratio?
PE Ratio11.2x
EarningsCN¥19.50b
Market CapCN¥218.53b

Price to Earnings Ratio vs Peers

How does 89888's PE Ratio compare to its peers?

The above table shows the PE ratio for 89888 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
1024 Kuaishou Technology
15.2x18.7%HK$226.5b
700 Tencent Holdings
20.7x11.3%HK$3.8t
1357 Meitu
30.5x31.6%HK$14.9b
3700 Inkeverse Group
10.1xn/aHK$3.4b
89888 Baidu
11.2x7.2%CN¥30.2b

Price-To-Earnings vs Peers: 89888 is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (19.1x).


Price to Earnings Ratio vs Industry

How does 89888's PE Ratio compare vs other companies in the Asian Interactive Media and Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
89888 11.2xIndustry Avg. 20.9xNo. of Companies12PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 89888 is good value based on its Price-To-Earnings Ratio (11.2x) compared to the Asian Interactive Media and Services industry average (20.9x).


Price to Earnings Ratio vs Fair Ratio

What is 89888'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.

89888 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: 89888 is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).


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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