Huaming Power Fair Value
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The fair market value of 002270.SZ stock is 12.16 CNY. Relative to the market price of 16.78 CNY Huaming Power is overvalued by 27.5%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Huaming Power Valuation
Current 002270.SZ share ticker price is 16.78 CNY.
The fair value level of 12.16 CNY can be considered as an effective entry point for long-term investors to start investing in 002270.SZ stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 28% higher its fair value
Current price is 50% higher its minimum value
Current price is 14% higher its maximum value
Market price:
002270.SZ stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Huaming Power Equipment Co Ltd Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
24.37
2
Median P/E over 5 years
20.49
3
Minimum P/E over 5 years
14.12
4
Earning per share (last 12 months)
0.59 CNY
Maximum value
1
x
4
=
14.45 CNY
Fair value
2
x
4
=
12.16 CNY
Minimum value
3
x
4
=
8.37 CNY
Huaming Power Equipment Co Ltd price metrics
24.92
Annual return (geometric mean)
42.83
Risk (standard deviation) of returns
β
0.75
Beta (volatility compared to market)