OneConnect Financial Technology Valuation

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

OCFT ($2.32) is trading below our estimate of [[fair value]] ($22.14)

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

Below Fair Value: OCFT ($2.32) is trading below our estimate of fair value ($22.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for OCFT. This is calculated by dividing OCFT's market cap by their current revenue.
What is OCFT's PS Ratio?
PS Ratio	0.3x
Sales	CN¥2.82b
Market Cap	CN¥760.50m

OCFT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for OCFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	11.4x
CRNC Cerence	0.4x	-15.4%	US$127.5m
VEEA Veea	10x	n/a	US$90.6m
CMCM Cheetah Mobile	1.3x	n/a	US$124.6m
WCT Wellchange Holdings	33.9x	n/a	US$84.4m
OCFT OneConnect Financial Technology	0.3x	-6.0%	US$819.0m

Price-To-Sales vs Peers: OCFT is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (11.4x).

Price to Sales Ratio vs Industry

How does OCFT's PS Ratio compare vs other companies in the US Software Industry?

84 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	5.0x	12.3%
OCFT OneConnect Financial Technology	0.3x	-6.0%	US$105.17m
VYX NCR Voyix	0.6x	-23.2%	US$2.04b
DSP Viant Technology	1x	11.2%	US$1.02b

84 Companies		Estimated Growth	Market Cap
Industry Avg.	5.0x	17.0%
OCFT OneConnect Financial Technology	0.3x	52.2%	US$105.17m

No more companies

Price-To-Sales vs Industry: OCFT is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Software industry average (5x).

Price to Sales Ratio vs Fair Ratio

What is OCFT'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.

OCFT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	0.6x

Price-To-Sales vs Fair Ratio: OCFT is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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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