Kwang Ming Silk Mill Valuation

Is 4420 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 4420 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4420 (NT$52.3) is trading below our estimate of fair value (NT$102.73)

Significantly Below Fair Value: 4420 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4420?

Key metric: As 4420 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4420. This is calculated by dividing 4420's market cap by their current earnings.
What is 4420's PE Ratio?
PE Ratio	1.1x
Earnings	NT$1.92b
Market Cap	NT$2.11b

4420 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	2.2x
Enterprise Value/EBITDA	6.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 4420's PE Ratio compare to its peers?

The above table shows the PE ratio for 4420 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	54.3x
9944 Shinih Enterprise	173.5x	n/a	NT$2.2b
1452 Hong Yi Fiber Ind	28x	n/a	NT$2.1b
1474 Honmyue Enterprise	13.3x	n/a	NT$1.8b
1445 Universal Textile	2.3x	n/a	NT$2.2b
4420 Kwang Ming Silk Mill	1.1x	n/a	NT$2.1b

Price-To-Earnings vs Peers: 4420 is good value based on its Price-To-Earnings Ratio (1.1x) compared to the peer average (54.3x).

Price to Earnings Ratio vs Industry

How does 4420's PE Ratio compare vs other companies in the TW Luxury Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	23.3x	17.6%
4420 Kwang Ming Silk Mill	1.1x	n/a	US$64.71m
1445 Universal Textile	2.3x	n/a	US$67.42m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap
Industry Avg.	23.3x	17.6%
4420 Kwang Ming Silk Mill	1.1x	n/a	US$64.71m

No more companies

Price-To-Earnings vs Industry: 4420 is good value based on its Price-To-Earnings Ratio (1.1x) compared to the TW Luxury industry average (23.3x).

Price to Earnings Ratio vs Fair Ratio

What is 4420'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.

4420 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 4420's Price-To-Earnings Fair Ratio for valuation analysis.

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.