Zhongsheng Group Holdings Limited

OTCPK:ZHSH.F Stock Report

Market Cap: US$5.7b

Zhongsheng Group Holdings Valuation

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

Below Fair Value: ZHSH.F ($2.56) is trading below our estimate of fair value ($11.51)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZHSH.F?

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

The above table shows the Price to Earnings ratio for ZHSH.F. This is calculated by dividing ZHSH.F's market cap by their current earnings.
What is ZHSH.F's PE Ratio?
PE Ratio6.5x
EarningsCN¥6.23b
Market CapCN¥40.40b

Price to Earnings Ratio vs Peers

How does ZHSH.F's PE Ratio compare to its peers?

The above table shows the PE ratio for ZHSH.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.3x
GPI Group 1 Automotive
11.1x7.8%US$5.6b
ABG Asbury Automotive Group
14.3x20.3%US$5.2b
AN AutoNation
9.8x6.9%US$7.1b
MUSA Murphy USA
22x7.2%US$11.2b
ZHSH.F Zhongsheng Group Holdings
6.5x12.0%US$44.6b

Price-To-Earnings vs Peers: ZHSH.F is good value based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

How does ZHSH.F's PE Ratio compare vs other companies in the US Specialty Retail Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
2xn/aUS$14.48m
SSOK Sunstock
1.3xn/aUS$723.59k
MASN Maison Luxe
0.08xn/aUS$144.03k
EXPR.Q Express
0.000002xn/aUS$37.84k
ZHSH.F 6.5xIndustry Avg. 18.1xNo. of Companies15PE01224364860+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZHSH.F is good value based on its Price-To-Earnings Ratio (6.5x) compared to the US Specialty Retail industry average (13.6x).

Price to Earnings Ratio vs Fair Ratio

What is ZHSH.F'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.

ZHSH.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ZHSH.F'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.

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