Jiangsu Expressway (SEHK:177): Assessing Valuation Following Lower Nine-Month Revenue and Net Income Results

Jiangsu Expressway (SEHK:177) released its earnings for the nine months ending September 30, 2025, with both revenue and net income coming in lower than the same period last year. This update offers a fresh perspective on the company’s current trajectory.

See our latest analysis for Jiangsu Expressway.

After updating its bylaws and posting weaker nine-month results, Jiangsu Expressway’s share price has still climbed noticeably, recording an 18.5% year-to-date return. Long-term momentum remains firmly positive with a 35.2% total shareholder return in the last twelve months.

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With the stock’s robust returns defying declining profits, the key question is whether Jiangsu Expressway is currently undervalued or if the market has already anticipated future growth and left little room for further upside.

Price-to-Earnings of 10x: Is it justified?

Jiangsu Expressway currently trades at a price-to-earnings (P/E) ratio of 10x, a figure that puts it slightly above peer and industry averages, but below the estimated fair value multiple.

The price-to-earnings ratio measures how much investors are willing to pay today for a dollar of current or future earnings. For infrastructure companies like Jiangsu Expressway, this metric offers a window into market sentiment on profitability and expected stability.

While the stock appears somewhat expensive compared to the peer average P/E of 9.8x and the industry average of 9.2x, the estimated fair price-to-earnings ratio stands at 12.2x. This suggests that the current market valuation could have room to rise if the company grows as anticipated. This dynamic points to a possible upside if earnings momentum picks up or market expectations shift.

Explore the SWS fair ratio for Jiangsu Expressway

Result: Price-to-Earnings of 10x (ABOUT RIGHT)

However, slowing revenue growth and potential shifts in market sentiment could quickly change the current outlook for Jiangsu Expressway’s valuation trajectory.

Find out about the key risks to this Jiangsu Expressway narrative.

Another View: What Does Discounted Cash Flow Suggest?

The SWS DCF model offers a different perspective and suggests Jiangsu Expressway is trading around 14% below what the model considers its fair value. This contrasts with the modest premium seen in peer comparisons. Might there be more upside in the price than the multiples alone reveal?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Jiangsu Expressway for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 855 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Jiangsu Expressway Narrative

If you have a different perspective or want to dive even deeper into the numbers, you can easily craft your own view in just a few minutes: Do it your way

A great starting point for your Jiangsu Expressway research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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