China Merchants Valuation
| CIHKY Stock | USD 22.40 0.51 2.23% |
At this time, the firm appears to be overvalued. China Merchants Bank shows a prevailing Real Value of $19.79 per share. The current price of the firm is $22.4. Our model approximates the value of China Merchants Bank from analyzing the firm fundamentals such as Return On Equity of 0.15, current valuation of 550.74 B, and Profit Margin of 1.09 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that China Merchants' price fluctuation is not too volatile 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.
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 22.4 | Real 19.79 | Hype 22.4 |
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 Total Value Analysis
China Merchants Bank is currently forecasted to have takeover price of 550.74 B with market capitalization of 146.93 B, debt of 826.7 B, and cash on hands of 693.17 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the China Merchants fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
550.74 B | 146.93 B | 826.7 B | 693.17 B |
China Merchants Investor Information
The company has price-to-book (P/B) ratio of 1.07. Some equities with similar Price to Book (P/B) outperform the market in the long run. China Merchants Bank has Price/Earnings To Growth (PEG) ratio of 0.49. The entity last dividend was issued on the 6th of July 2022. Based on the key indicators related to China Merchants' liquidity, profitability, solvency, and operating efficiency, China Merchants Bank is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.China Merchants Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. China Merchants has an asset utilization ratio of 3.54 percent. This suggests that the Company is making $0.0354 for each dollar of assets. An increasing asset utilization means that China Merchants Bank is more efficient with each dollar of assets it utilizes for everyday operations.China Merchants Profitability Analysis
The company reported the revenue of 327.22 B. Net Income was 120.83 B with profit before overhead, payroll, taxes, and interest of 126.55 B.About China Merchants Valuation
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, and relevant financial multiples and ratios and then compare them to those of 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.
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.
| 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 |
Additional 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.