China OTC Stock Valuation

CIHKY
 Stock
  

USD 26.01  0.51  1.92%   

Do you wonder what the value of China Merchants Bank is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as China Merchants, is its stock price multiplied by the total number of shares outstanding, calculating China Merchants' enterprise value requires a different approach. It uses China Merchants' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
China Merchants Bank shows a prevailing Real Value of $22.76 per share. The current price of the firm is $26.01. At this time, the firm appears to be overvalued. Our model approximates the value of China Merchants Bank from analyzing the firm fundamentals such as Profit Margin of 45.64 %, current valuation of 103.07 B, and Return On Equity of 15.02 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
China Merchants Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as China Merchants's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

China Most Recent Valuation Data

Price Book
1.01
Enterprise Value
550.7 B
Price Sales
0.49
Forward PE
6.75
Trailing PE
7.47
Overvalued
Today 26.01
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.
Our valuation method for China Merchants Bank is useful when determining the fair value of the China otc stock, 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 OTC Stock. 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.
22.76
Real Value
28.53
Upside
Estimating the potential upside or downside of China Merchants Bank helps investors to forecast how China otc stock'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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
25.2126.3927.58
Details
Hype
Prediction
LowEstimated ValueHigh
23.6225.9428.26
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.161.321.47
Details

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 book category among related companies. It is number one stock in last dividend paid category among related companies creating about  6.71  of Last Dividend Paid per Price to Book. . 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' OTC Stock . 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 otc 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.
Fiscal Year End
December
Industry
Banks-Regional
Full Time Employees
103.7 K
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.
China Merchants' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether China Merchants' value is low or high relative to the company's performance and growth projections. Determining the market value of China Merchants can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

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 Valuation Growth Rates

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.
Earnings Quarterly Growth12.50%
Revenue Growth9.80%
Payout Ratio26.21%
Earnings Growth12.60%
Enterprise Value To Revenue0.38
Continue to Trending Equities. Note that the China Merchants Bank information on this page should be used as a complementary analysis to other China Merchants' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Complementary Tools for China OTC Stock analysis

When running China Merchants Bank 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 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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Is China Merchants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of China Merchants. If investors know China will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about China Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.13
Market Capitalization
133.8 B
Quarterly Revenue Growth YOY
0.098
Return On Assets
0.0138
Return On Equity
0.15
The market value of China Merchants Bank is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Merchants' value that differs from its market value or its book value, called intrinsic value, which is China Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because China Merchants' market value can be influenced by many factors that don't directly affect China Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine China Merchants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.