Lenovo Group Limited

SZSC:992 Stock Report

Market Cap: HK$111.4b

Lenovo Group Valuation

Is 992 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 992 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 992 (HK$8.98) is trading below our estimate of fair value (HK$18.22)

Significantly Below Fair Value: 992 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 992?

Key metric: As 992 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 992. This is calculated by dividing 992's market cap by their current earnings.
What is 992's PE Ratio?
PE Ratio12.1x
EarningsUS$1.19b
Market CapUS$14.31b

Price to Earnings Ratio vs Peers

How does 992's PE Ratio compare to its peers?

The above table shows the PE ratio for 992 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.3x
1810 Xiaomi
35.3x17.0%HK$717.5b
1263 PC Partner Group
7.7xn/aHK$1.8b
3969 China Railway Signal & Communication
9.5x11.0%HK$68.1b
3315 Goldpac Group
8.5xn/aHK$807.9m
992 Lenovo Group
12.1x17.5%HK$111.4b

Price-To-Earnings vs Peers: 992 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does 992's PE Ratio compare vs other companies in the Asian Tech Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
992 12.1xIndustry Avg. 21.9xNo. of Companies18PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 992 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the Asian Tech industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is 992'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.

992 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: 992 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

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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