Shares of Country Garden Services Holdings Company Limited (6098), a leading property management firm in China, surged by 5.97% on Wednesday, September 26, 2024, following a detailed valuation analysis suggesting the stock could be significantly undervalued.
According to the analysis by Simply Wall St, CG SERVICES' fair value is estimated to be around HK$9.14 per share based on a discounted cash flow (DCF) model. This implies that the current share price of HK$4.69 represents a discount of approximately 49% to the company's intrinsic value.
The DCF analysis takes into account various factors, including the company's projected future cash flows, growth rates, and a discount rate based on its risk profile. The analysis highlights several strengths of CG SERVICES, such as a strong balance sheet, the potential to break even next year, and an attractive price-to-sales ratio, suggesting the stock represents good value at current levels.