Chinasoft International Limited

SEHK:354 Stock Report

Market Cap: HK$12.6b

Chinasoft International Valuation

Is 354 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: 354 (HK$4.69) is trading below our estimate of fair value (HK$17.17)

Significantly Below Fair Value: 354 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 354?

Other financial metrics that can be useful for relative valuation.

354 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/Revenue0.6x
Enterprise Value/EBITDA17.6x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does 354's PE Ratio compare to its peers?

The above table shows the PE ratio for 354 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.9x
861 Digital China Holdings
28.4x11.0%HK$4.9b
1075 Capinfo
5.3xn/aHK$753.5m
771 Automated Systems Holdings
3.2xn/aHK$575.3m
2501 Maiyue Technology
10.6xn/aHK$570.0m
354 Chinasoft International
21.1x28.4%HK$12.6b

Price-To-Earnings vs Peers: 354 is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the peer average (11.9x).


Price to Earnings Ratio vs Industry

How does 354's PE Ratio compare vs other companies in the Asian IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 354 is good value based on its Price-To-Earnings Ratio (21.1x) compared to the Asian IT industry average (24x).


Price to Earnings Ratio vs Fair Ratio

What is 354'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.

354 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.1x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: 354 is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).


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 354 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.69
HK$7.10
+51.5%
9.1%HK$7.96HK$5.88n/a9
Mar ’25HK$5.23
HK$6.91
+32.2%
10.5%HK$7.96HK$5.87n/a11
Feb ’25HK$4.46
HK$7.07
+58.5%
11.1%HK$8.15HK$5.91n/a11
Jan ’25HK$5.99
HK$7.00
+16.9%
13.0%HK$8.20HK$5.69n/a11
Dec ’24HK$6.63
HK$6.97
+5.1%
12.8%HK$8.15HK$5.80n/a11
Nov ’24HK$5.60
HK$6.55
+17.0%
10.0%HK$7.90HK$5.66n/a11
Oct ’24HK$5.58
HK$6.37
+14.2%
11.4%HK$7.92HK$5.47n/a13
Sep ’24HK$5.20
HK$6.48
+24.6%
19.5%HK$10.21HK$5.51n/a13
Aug ’24HK$4.84
HK$6.70
+38.5%
18.4%HK$10.34HK$5.54n/a13
Jul ’24HK$4.93
HK$6.55
+32.9%
19.9%HK$10.26HK$5.49n/a12
Jun ’24HK$4.76
HK$6.66
+39.9%
17.7%HK$9.85HK$5.63n/a12
May ’24HK$5.21
HK$6.77
+30.0%
17.7%HK$10.11HK$5.78n/a11
Apr ’24HK$4.97
HK$7.36
+48.1%
26.5%HK$12.57HK$5.80n/a12
Mar ’24HK$5.97
HK$9.39
+57.3%
14.8%HK$13.21HK$7.49HK$5.2314
Feb ’24HK$7.01
HK$9.39
+34.0%
14.8%HK$13.21HK$7.49HK$4.4614
Jan ’24HK$6.79
HK$9.07
+33.6%
15.8%HK$12.95HK$7.35HK$5.9914
Dec ’23HK$6.79
HK$8.68
+27.9%
15.8%HK$12.41HK$7.04HK$6.6314
Nov ’23HK$5.53
HK$8.58
+55.2%
14.0%HK$11.46HK$7.01HK$5.6014
Oct ’23HK$4.83
HK$9.03
+87.0%
14.3%HK$11.78HK$7.20HK$5.5814
Sep ’23HK$5.96
HK$9.50
+59.3%
14.6%HK$12.32HK$7.80HK$5.2014
Aug ’23HK$6.76
HK$10.48
+55.0%
12.4%HK$13.09HK$8.50HK$4.8413
Jul ’23HK$8.03
HK$10.54
+31.3%
13.0%HK$13.20HK$8.50HK$4.9312
Jun ’23HK$7.24
HK$10.85
+49.8%
15.7%HK$14.28HK$8.12HK$4.7611
May ’23HK$6.46
HK$11.03
+70.8%
17.5%HK$14.33HK$8.15HK$5.2110
Apr ’23HK$6.23
HK$12.19
+95.7%
22.0%HK$17.65HK$8.47HK$4.9710
Mar ’23HK$7.20
HK$15.21
+111.3%
23.1%HK$21.16HK$11.31HK$5.9711

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.