China Steel Corporation

TWSE:2002 Stock Report

Market Cap: NT$339.3b

China Steel Valuation

Is 2002 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2002 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2002 (NT$22.15) is trading below our estimate of fair value (NT$142.13)

Significantly Below Fair Value: 2002 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2002?

Key metric: As 2002 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2002. This is calculated by dividing 2002's market cap by their current earnings.
What is 2002's PE Ratio?
PE Ratio86.4x
EarningsNT$3.91b
Market CapNT$339.30b

Price to Earnings Ratio vs Peers

How does 2002's PE Ratio compare to its peers?

The above table shows the PE ratio for 2002 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.4x
2027 Ta Chen Stainless Pipe
18.9x54.7%NT$70.0b
2015 Feng Hsin Steel
18.1x8.3%NT$44.6b
2006 Tung Ho Steel Enterprise
11.4x-2.2%NT$53.7b
2211 Evergreen Steel
17.2xn/aNT$42.8b
2002 China Steel
86.4x57.9%NT$339.3b

Price-To-Earnings vs Peers: 2002 is expensive based on its Price-To-Earnings Ratio (86.4x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

How does 2002's PE Ratio compare vs other companies in the TW Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
2002 86.4xIndustry Avg. 18.2xNo. of Companies7PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2002 is expensive based on its Price-To-Earnings Ratio (86.4x) compared to the TW Metals and Mining industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is 2002'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.

2002 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio86.4x
Fair PE Ratio49.8x

Price-To-Earnings vs Fair Ratio: 2002 is expensive based on its Price-To-Earnings Ratio (86.4x) compared to the estimated Fair Price-To-Earnings Ratio (49.8x).

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 2002 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$22.05
NT$23.83
+8.0%
10.7%NT$28.00NT$19.80n/a8
Nov ’25NT$22.70
NT$24.03
+5.8%
11.6%NT$28.00NT$19.80n/a8
Oct ’25NT$23.35
NT$24.64
+5.5%
12.6%NT$28.00NT$19.80n/a8
Sep ’25NT$22.25
NT$24.91
+12.0%
12.2%NT$28.00NT$19.80n/a8
Aug ’25NT$23.15
NT$25.41
+9.8%
10.5%NT$28.00NT$19.80n/a8
Jul ’25NT$23.05
NT$25.48
+10.5%
10.7%NT$28.50NT$19.80n/a8
Jun ’25NT$23.75
NT$25.64
+7.9%
10.7%NT$28.50NT$20.10n/a8
May ’25NT$24.85
NT$25.64
+3.2%
10.7%NT$28.50NT$20.10n/a8
Apr ’25NT$24.00
NT$25.95
+8.1%
12.2%NT$31.00NT$20.10n/a8
Mar ’25NT$24.45
NT$26.53
+8.5%
11.8%NT$31.00NT$20.10n/a9
Feb ’25NT$25.25
NT$26.34
+4.3%
12.8%NT$31.00NT$20.10n/a9
Jan ’25NT$27.00
NT$26.43
-2.1%
12.7%NT$31.00NT$20.10n/a9
Dec ’24NT$26.00
NT$26.34
+1.3%
12.1%NT$30.00NT$20.20n/a9
Nov ’24NT$24.05
NT$26.46
+10.0%
12.3%NT$30.00NT$20.20NT$22.709
Oct ’24NT$25.25
NT$26.46
+4.8%
12.3%NT$30.00NT$20.20NT$23.359
Sep ’24NT$26.70
NT$27.47
+2.9%
12.4%NT$34.00NT$22.60NT$22.259
Aug ’24NT$28.15
NT$28.13
-0.06%
14.1%NT$34.00NT$22.60NT$23.159
Jul ’24NT$29.40
NT$27.78
-5.5%
14.7%NT$34.00NT$22.60NT$23.058
Jun ’24NT$29.10
NT$27.94
-4.0%
14.2%NT$34.00NT$22.60NT$23.758
May ’24NT$29.10
NT$28.97
-0.5%
15.7%NT$35.00NT$22.60NT$24.859
Apr ’24NT$30.90
NT$28.46
-7.9%
16.3%NT$35.00NT$22.60NT$24.008
Mar ’24NT$30.30
NT$28.46
-6.1%
16.3%NT$35.00NT$22.60NT$24.458
Feb ’24NT$32.00
NT$28.21
-11.8%
15.6%NT$35.00NT$22.60NT$25.258
Jan ’24NT$29.80
NT$27.51
-7.7%
14.1%NT$35.00NT$22.60NT$27.008
Dec ’23NT$29.25
NT$27.24
-6.9%
13.8%NT$34.00NT$22.60NT$26.008
Nov ’23NT$27.00
NT$27.41
+1.5%
13.6%NT$34.00NT$22.50NT$24.058

Analyst Forecast: Target price is less than 20% higher than the current share price.

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