VNET Group, Inc.

NasdaqGS:VNET Stock Report

Market Cap: US$1.2b

VNET Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: VNET ($3.75) is trading below our estimate of fair value ($13.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for VNET. This is calculated by dividing VNET's market cap by their current revenue.
What is VNET's PS Ratio?
PS Ratio0.9x
SalesCN¥7.91b
Market CapCN¥8.38b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VNET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
FSLY Fastly
2x8.0%US$1.1b
BASE Couchbase
5.4x14.4%US$1.1b
KC Kingsoft Cloud Holdings
1.7x11.9%US$1.3b
RXT Rackspace Technology
0.2x0.7%US$541.6m
VNET VNET Group
0.9x10.2%US$1.2b

Price-To-Sales vs Peers: VNET is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does VNET's PS Ratio compare vs other companies in the US IT Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.6%US$7.55b
DXC DXC Technology
0.3x-1.9%US$3.95b
RXT Rackspace Technology
0.2x0.7%US$541.61m
UIS Unisys
0.3x3.4%US$541.03m
VNET 0.9xIndustry Avg. 2.1xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VNET is good value based on its Price-To-Sales Ratio (0.9x) compared to the US IT industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is VNET'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.

VNET PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: VNET is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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 VNET forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.75
US$5.38
+43.5%
35.6%US$10.74US$3.05n/a11
Nov ’25US$3.40
US$4.73
+39.1%
32.4%US$7.99US$3.10n/a8
Oct ’25US$4.19
US$4.34
+3.7%
39.5%US$8.11US$2.16n/a8
Sep ’25US$2.78
US$3.82
+37.3%
50.6%US$7.98US$2.09n/a7
Aug ’25US$1.98
US$3.55
+79.1%
44.8%US$6.70US$2.05n/a7
Jul ’25US$2.06
US$3.57
+73.2%
41.5%US$6.67US$2.05n/a8
Jun ’25US$1.94
US$3.60
+85.7%
40.9%US$6.69US$1.80n/a8
May ’25US$1.74
US$3.86
+121.8%
37.5%US$6.52US$1.80n/a8
Apr ’25US$1.65
US$4.02
+143.9%
31.8%US$6.54US$2.54n/a8
Mar ’25US$1.54
US$4.53
+194.4%
34.4%US$8.01US$2.54n/a9
Feb ’25US$1.67
US$4.66
+179.1%
32.5%US$8.11US$2.57n/a10
Jan ’25US$2.87
US$4.66
+62.4%
32.5%US$8.11US$2.57n/a10
Dec ’24US$2.69
US$4.66
+73.2%
31.7%US$8.05US$2.55n/a10
Nov ’24US$3.30
US$5.11
+55.1%
35.2%US$8.36US$2.99US$3.4010
Oct ’24US$3.13
US$4.96
+58.4%
36.2%US$8.38US$3.00US$4.1911
Sep ’24US$3.62
US$4.99
+37.9%
34.5%US$8.39US$3.00US$2.7812
Aug ’24US$2.81
US$5.14
+82.9%
36.5%US$8.43US$2.90US$1.9812
Jul ’24US$2.90
US$5.32
+83.6%
33.1%US$8.29US$2.85US$2.0611
Jun ’24US$2.69
US$5.69
+111.5%
30.1%US$8.50US$3.40US$1.9410
May ’24US$2.92
US$5.69
+94.8%
29.2%US$8.55US$3.48US$1.7410
Apr ’24US$3.24
US$5.83
+80.0%
28.0%US$8.60US$3.50US$1.6511
Mar ’24US$3.95
US$7.56
+91.5%
22.5%US$10.50US$4.78US$1.5411
Feb ’24US$6.22
US$7.68
+23.4%
23.1%US$10.69US$4.71US$1.6711
Jan ’24US$5.67
US$7.76
+36.8%
27.9%US$12.65US$4.62US$2.8712
Dec ’23US$4.82
US$7.50
+55.7%
27.4%US$12.10US$4.42US$2.6912
Nov ’23US$4.56
US$8.97
+96.7%
53.0%US$22.98US$4.17US$3.3012

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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