Chung Hung Steel Corporation

TWSE:2014 Stock Report

Market Cap: NT$28.9b

Chung Hung Steel Valuation

Is 2014 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2014 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2014 (NT$20.15) is trading above our estimate of fair value (NT$12.72)

Significantly Below Fair Value: 2014 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2014?

Key metric: As 2014 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2014. This is calculated by dividing 2014's market cap by their current revenue.
What is 2014's PS Ratio?
PS Ratio0.9x
SalesNT$33.12b
Market CapNT$28.93b

Price to Sales Ratio vs Peers

How does 2014's PS Ratio compare to its peers?

The above table shows the PS ratio for 2014 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
2023 Yieh Phui Enterprise
0.4xn/aNT$30.4b
2211 Evergreen Steel
3.7xn/aNT$42.8b
2015 Feng Hsin Steel
1.3x1.1%NT$44.8b
9957 Yieh United Steel
0.4xn/aNT$16.8b
2014 Chung Hung Steel
0.9x9.7%NT$28.9b

Price-To-Sales vs Peers: 2014 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does 2014's PS Ratio compare vs other companies in the TW Metals and Mining Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
No more companies available in this PS range
2014 0.9xIndustry Avg. 0.9xNo. of Companies7PS00.61.21.82.43+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2014 is expensive based on its Price-To-Sales Ratio (0.9x) compared to the TW Metals and Mining industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is 2014's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2014 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: 2014 is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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 2014 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNT$20.15
NT$24.90
+23.6%
1.2%NT$25.20NT$24.50n/a3
Nov ’25NT$20.90
NT$25.10
+20.1%
0.4%NT$25.20NT$25.00n/a2
Oct ’25NT$22.95
NT$25.10
+9.4%
0.4%NT$25.20NT$25.00n/a2
Sep ’25NT$19.35
NT$25.10
+29.7%
0.4%NT$25.20NT$25.00n/a2
Aug ’25NT$21.60
NT$26.10
+20.8%
3.4%NT$27.00NT$25.20n/a2
Jul ’25NT$21.40
NT$26.10
+22.0%
3.4%NT$27.00NT$25.20n/a2
Jun ’25NT$22.75
NT$26.10
+14.7%
3.4%NT$27.00NT$25.20n/a2
May ’25NT$23.25
NT$25.23
+8.5%
5.7%NT$27.00NT$23.50n/a3
Apr ’25NT$22.25
NT$25.18
+13.1%
4.9%NT$27.00NT$23.50n/a4
Mar ’25NT$23.05
NT$25.18
+9.2%
4.9%NT$27.00NT$23.50n/a4
Feb ’25NT$23.85
NT$25.13
+5.3%
5.0%NT$27.00NT$23.50n/a4
Jan ’25NT$26.05
NT$25.13
-3.6%
5.0%NT$27.00NT$23.50n/a4
Dec ’24NT$23.50
NT$25.13
+6.9%
5.0%NT$27.00NT$23.50n/a4
Nov ’24NT$21.40
NT$25.88
+20.9%
9.5%NT$30.00NT$23.50NT$20.904
Oct ’24NT$22.55
NT$26.67
+18.3%
8.8%NT$30.00NT$25.00NT$22.953
Sep ’24NT$23.15
NT$27.38
+18.3%
8.7%NT$30.00NT$25.00NT$19.354
Aug ’24NT$24.70
NT$26.13
+5.8%
7.5%NT$29.50NT$25.00NT$21.604
Jul ’24NT$24.40
NT$26.50
+8.6%
6.9%NT$29.50NT$25.00NT$21.404
Jun ’24NT$23.10
NT$26.75
+15.8%
6.3%NT$29.50NT$25.00NT$22.754
May ’24NT$24.50
NT$29.00
+18.4%
13.2%NT$35.00NT$25.00NT$23.254
Apr ’24NT$26.40
NT$26.38
-0.09%
26.4%NT$35.00NT$16.00NT$22.254
Mar ’24NT$27.40
NT$23.83
-13.0%
36.3%NT$35.00NT$14.80NT$23.054
Feb ’24NT$28.75
NT$18.27
-36.5%
22.4%NT$24.00NT$14.80NT$23.853
Jan ’24NT$26.75
NT$18.27
-31.7%
22.4%NT$24.00NT$14.80NT$26.053
Dec ’23NT$23.95
NT$18.27
-23.7%
22.4%NT$24.00NT$14.80NT$23.503
Nov ’23NT$20.00
NT$21.10
+5.5%
9.8%NT$24.00NT$19.30NT$21.403

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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