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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.