BeiGene Valuation

Q: What is the Fair Price of 6160 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6160 (HK$115.6) is trading below our estimate of [[fair value]] (HK$313.6)

Is 6160 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-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 6160 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6160 (HK$115.6) is trading below our estimate of fair value (HK$313.6)

Significantly Below Fair Value: 6160 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6160?

Key metric: As 6160 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6160. This is calculated by dividing 6160's market cap by their current revenue.
What is 6160's PS Ratio?
PS Ratio	6.2x
Sales	CN¥23.51b
Market Cap	CN¥146.62b

6160 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	5.7x
Enterprise Value/EBITDA	-24.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 6160's PS Ratio compare to its peers?

The above table shows the PS ratio for 6160 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	15.8x
9926 Akeso	34.2x	33.5%	HK$68.9b
1801 Innovent Biologics	7.6x	22.1%	HK$60.8b
6990 Sichuan Kelun-Biotech Biopharmaceutical	19.7x	24.2%	HK$38.4b
2696 Shanghai Henlius Biotech	1.8x	10.1%	HK$11.4b
6160 BeiGene	6.2x	19.5%	HK$20.2b

Price-To-Sales vs Peers: 6160 is good value based on its Price-To-Sales Ratio (6.2x) compared to the peer average (15.7x).

Price to Sales Ratio vs Industry

How does 6160's PS Ratio compare vs other companies in the HK Biotechs Industry?

14 Companies	Price / Sales	Estimated Growth	Market Cap
6826 Shanghai Haohai Biological Technology	2.1x	11.8%	US$1.80b
1530 3SBio	1.4x	9.3%	US$1.68b
2696 Shanghai Henlius Biotech	1.9x	10.1%	US$1.46b
775 CK Life Sciences Int'l. (Holdings)	0.8x	n/a	US$543.51m

14 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 6160 is good value based on its Price-To-Sales Ratio (6.2x) compared to the Hong Kong Biotechs industry average (11.2x).

Price to Sales Ratio vs Fair Ratio

What is 6160'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.

6160 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6.2x
Fair PS Ratio	8.4x

Price-To-Sales vs Fair Ratio: 6160 is good value based on its Price-To-Sales Ratio (6.2x) compared to the estimated Fair Price-To-Sales Ratio (8.4x).

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.

Discover undervalued companies

China Shineway Pharmaceutical Group

HK$6.3b

An investment holding company, engages in the research and development, manufacture, and trade of Chinese medicines in the People’s Republic of China and Hong Kong.

2877

HK$8.34

0.7%

n/a

3SBio

HK$13.1b

An investment holding company, develops, produces markets, and sells biopharmaceutical products in Mainland China and internationally.

1530

HK$5.55

-2.5%

-25.1%

JW (Cayman) Therapeutics

HK$534.0m

A clinical stage cell therapy company, engages in the research and development, manufacturing, and marketing of anti-tumor drugs in the People’s Republic of China.

2126

HK$1.32

-0.8%

-51.1%