China Merchants Valuation
| CIHKY Stock | USD 20.79 0.04 0.19% |
At this time, the firm appears to be undervalued. China Merchants Bank shows a prevailing Real Value of $23.52 per share. The current price of the firm is $20.79. Our model approximates the value of China Merchants Bank from analyzing the firm fundamentals such as Current Valuation of 550.74 B, return on equity of 0.15, and Profit Margin of 1.09 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Undervalued
Today
Please note that China Merchants' price fluctuation is very steady at this time. Calculation of the real value of China Merchants Bank is based on 3 months time horizon. Increasing China Merchants' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for China Merchants Bank is useful when determining the fair value of the China pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of China Merchants. Since China Merchants is currently traded on the exchange, buyers and sellers on that exchange determine the market value of China Pink Sheet. However, China Merchants' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 20.79 | Real 23.52 | Hype 20.75 |
The real value of China Pink Sheet, also known as its intrinsic value, is the underlying worth of China Merchants Bank Company, which is reflected in its stock price. It is based on China Merchants' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of China Merchants' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence China Merchants' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of China Merchants Bank helps investors to forecast how China pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of China Merchants more accurately as focusing exclusively on China Merchants' fundamentals will not take into account other important factors: China Merchants Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining China Merchants's current stock value. Our valuation model uses many indicators to compare China Merchants value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across China Merchants competition to find correlations between indicators driving China Merchants's intrinsic value. More Info.China Merchants Bank is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.17 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for China Merchants Bank is roughly 5.84 . Comparative valuation analysis is a catch-all model that can be used if you cannot value China Merchants by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for China Merchants' Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the China Merchants' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates China Merchants' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in China Merchants and how it compares across the competition.
About China Merchants Valuation
The pink sheet valuation mechanism determines the current worth of China Merchants Bank on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of China Merchants Bank. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of China Merchants Bank based exclusively on its fundamental and basic technical indicators. By analyzing China Merchants's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of China Merchants's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of China Merchants. We calculate exposure to China Merchants's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to China Merchants's related companies.China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. China Merchants Bank Co., Ltd. was founded in 1987 and is headquartered in Shenzhen, China. China Merchants operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 103669 people.
8 Steps to conduct China Merchants' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates China Merchants' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct China Merchants' valuation analysis, follow these 8 steps:- Gather financial information: Obtain China Merchants' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine China Merchants' revenue streams: Identify China Merchants' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research China Merchants' industry and market trends, including the size of the market, growth rate, and competition.
- Establish China Merchants' growth potential: Evaluate China Merchants' management, business model, and growth potential.
- Determine China Merchants' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate China Merchants' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of China Merchants represents a small ownership stake in the entity. As a stockholder of China, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
China Merchants Dividends Analysis For Valuation
Please note that China Merchants has scaled down on payment of dividends at this time.
There are various types of dividends China Merchants can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of China shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from China Merchants Bank directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When China pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of China Merchants by the value of the dividends paid out.
China Merchants Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as China Merchants does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 5.2 B | |
| Quarterly Earnings Growth Y O Y | 0.268 | |
| Forward Price Earnings | 6.4516 | |
| Retained Earnings | 428.6 B |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in China Merchants Bank. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for China Pink Sheet analysis
When running China Merchants' price analysis, check to measure China Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy China Merchants is operating at the current time. Most of China Merchants' value examination focuses on studying past and present price action to predict the probability of China Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Merchants' price. Additionally, you may evaluate how the addition of China Merchants to your portfolios can decrease your overall portfolio volatility.
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