Chin Hsin Environ Engineering Co., Ltd.

TWSE:6951 Stock Report

Market Cap: NT$3.3b

Chin Hsin Environ Engineering Valuation

Is 6951 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 6951 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6951 (NT$71.6) is trading below our estimate of fair value (NT$158.18)

Significantly Below Fair Value: 6951 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6951?

Key metric: As 6951 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6951. This is calculated by dividing 6951's market cap by their current earnings.
What is 6951's PE Ratio?
PE Ratio24.5x
EarningsNT$134.29m
Market CapNT$3.33b

Price to Earnings Ratio vs Peers

How does 6951's PE Ratio compare to its peers?

The above table shows the PE ratio for 6951 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average54.8x
7578 Revivegen
46.9xn/aNT$2.3b
8476 Taiwan Environment Scientific
13.6xn/aNT$4.6b
7507 Enrestec
93.6xn/aNT$5.9b
8440 E&E RecyclingInc
65.1xn/aNT$1.8b
6951 Chin Hsin Environ Engineering
24.5x12.6%NT$3.3b

Price-To-Earnings vs Peers: 6951 is good value based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (54.8x).


Price to Earnings Ratio vs Industry

How does 6951's PE Ratio compare vs other companies in the TW Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
6951 24.5xIndustry Avg. 22.1xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6951 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the TW Commercial Services industry average (22.1x).


Price to Earnings Ratio vs Fair Ratio

What is 6951'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.

6951 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: 6951 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).


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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