Tung Ho Steel Enterprise Corporation

TWSE:2006 Stock Report

Market Cap: NT$53.2b

Tung Ho Steel Enterprise Valuation

Is 2006 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 2006 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2006 (NT$72.6) is trading below our estimate of fair value (NT$85.63)

Significantly Below Fair Value: 2006 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2006?

Key metric: As 2006 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2006. This is calculated by dividing 2006's market cap by their current earnings.
What is 2006's PE Ratio?
PE Ratio11.3x
EarningsNT$4.69b
Market CapNT$53.16b

Price to Earnings Ratio vs Peers

How does 2006's PE Ratio compare to its peers?

The above table shows the PE ratio for 2006 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.9x
2027 Ta Chen Stainless Pipe
26.1x82.9%NT$71.7b
2015 Feng Hsin Steel
18.1x8.3%NT$44.8b
2211 Evergreen Steel
17.1xn/aNT$42.8b
9958 Century Iron and Steel IndustrialLtd
22.1x44.7%NT$46.5b
2006 Tung Ho Steel Enterprise
11.3x-2.2%NT$53.0b

Price-To-Earnings vs Peers: 2006 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

How does 2006'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
2006 11.3xIndustry Avg. 19.1xNo. of Companies7PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2006 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the TW Metals and Mining industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is 2006'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.

2006 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: 2006 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

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 2006 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$72.60
NT$83.00
+14.3%
3.0%NT$86.00NT$80.00n/a3
Nov ’25NT$76.40
NT$82.67
+8.2%
3.0%NT$86.00NT$80.00n/a3
Oct ’25NT$79.40
NT$82.67
+4.1%
3.0%NT$86.00NT$80.00n/a3
Sep ’25NT$78.20
NT$79.33
+1.4%
3.1%NT$82.00NT$76.00n/a3
Aug ’25NT$75.00
NT$79.33
+5.8%
3.1%NT$82.00NT$76.00n/a3
Jul ’25NT$70.90
NT$78.50
+10.7%
3.3%NT$82.00NT$76.00n/a4
Jun ’25NT$69.10
NT$78.50
+13.6%
3.3%NT$82.00NT$76.00n/a4
May ’25NT$73.30
NT$79.75
+8.8%
4.9%NT$85.00NT$76.00n/a4
Apr ’25NT$69.20
NT$79.75
+15.2%
4.9%NT$85.00NT$76.00n/a4
Mar ’25NT$78.00
NT$78.00
0%
5.2%NT$85.00NT$75.00n/a4
Feb ’25NT$73.50
NT$74.25
+1.0%
3.4%NT$76.00NT$70.00n/a4
Jan ’25NT$70.70
NT$73.00
+3.3%
3.5%NT$76.00NT$70.00n/a4
Dec ’24NT$69.50
NT$67.00
-3.6%
7.4%NT$71.00NT$60.00n/a3
Nov ’24NT$65.90
NT$65.33
-0.9%
6.9%NT$71.00NT$60.00NT$76.403
Oct ’24NT$60.70
NT$65.33
+7.6%
6.9%NT$71.00NT$60.00NT$79.403
Sep ’24NT$60.00
NT$64.33
+7.2%
5.1%NT$68.00NT$60.00NT$78.203
Aug ’24NT$57.90
NT$63.00
+8.8%
5.6%NT$68.00NT$60.00NT$75.003
Jul ’24NT$59.50
NT$63.00
+5.9%
5.6%NT$68.00NT$60.00NT$70.903
Jun ’24NT$56.20
NT$59.67
+6.2%
11.6%NT$68.00NT$51.00NT$69.103
May ’24NT$57.70
NT$58.00
+0.5%
12.5%NT$68.00NT$51.00NT$73.303
Apr ’24NT$56.00
NT$58.00
+3.6%
12.5%NT$68.00NT$51.00NT$69.203
Mar ’24NT$62.00
NT$56.00
-9.7%
8.1%NT$62.00NT$51.00NT$78.003
Feb ’24NT$57.00
NT$56.00
-1.8%
8.1%NT$62.00NT$51.00NT$73.503
Jan ’24NT$52.70
NT$56.00
+6.3%
8.1%NT$62.00NT$51.00NT$70.703
Dec ’23NT$53.20
NT$61.00
+14.7%
14.7%NT$75.00NT$51.00NT$69.504
Nov ’23NT$49.80
NT$63.00
+26.5%
12.4%NT$75.00NT$56.00NT$65.904

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

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