China Southern Airlines Co Ltd banner

China Southern Airlines Co Ltd
F:ZNH

Watchlist Manager
China Southern Airlines Co Ltd Logo
China Southern Airlines Co Ltd
F:ZNH
Watchlist
Price: 33.6 EUR -0.59% Market Closed
Market Cap: €19.6B

P/FCFE

25.1
Current
54%
More Expensive
vs 3-y average of 16.3

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
25.1
=
Market Cap
€107.5B
/
Free Cash Flow to Equity
¥3.9B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
25.1
=
Market Cap
€107.5B
/
Free Cash Flow to Equity
¥3.9B

Valuation Scenarios

China Southern Airlines Co Ltd is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (16.3), the stock would be worth €21.88 (35% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-43%
Maximum Upside
+5%
Average Downside
26%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 25.1 €33.6
0%
3-Year Average 16.3 €21.88
-35%
5-Year Average 14.2 €19.08
-43%
Industry Average 17.5 €23.5
-30%
Country Average 26.4 €35.37
+5%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close

Market Distribution

Higher than 88% of companies in China
Percentile
88th
Based on 5 086 companies
88th percentile
155.7
Low
0.2 — 13.7
Typical Range
13.7 — 52.8
High
52.8 —
Distribution Statistics
China
Min 0.2
30th Percentile 13.7
Median 26.4
70th Percentile 52.8
Max 2 279 450.9

China Southern Airlines Co Ltd
Glance View

Market Cap
19.6B EUR
Industry
Airlines

China Southern Airlines Co Ltd, one of Asia's leading carriers, traces its roots back to 1988, when the Chinese government restructured its aviation industry, paving the way for this regional behemoth to take to the skies. With its headquarters strategically placed in Guangzhou, this airline has meticulously built its vast network, connecting over 200 destinations across more than 40 countries worldwide. The company's business model hinges on a robust blend of passenger and cargo services. Passenger transport remains the linchpin of its operations, with its fleet comprising more than 600 aircraft. Domestic flights within China contribute significantly to its revenue streams, though its international operations, particularly to key global hubs like Los Angeles, Sydney, and Paris, also play a critical role in driving earnings. To bolster its core business, China Southern has invested substantially in ancillary services that support its primary operations. These include partnerships with global airlines through codeshare agreements and membership in the SkyTeam alliance, which extends its connectivity beyond its standalone reach. The company also leverages the synergies of its subsidiaries, which provide additional aviation services ranging from aircraft maintenance to airport ground handling. Another revenue stream stems from its cargo operations, which have become increasingly vital, especially amidst the shifts in global trade dynamics. Despite the challenges of the ever-fluctuating aviation market, China Southern Airlines continues to adapt by embracing new technologies and optimizing efficiency across its operations, ensuring that it remains a formidable player in the competitive airline industry.

ZNH Intrinsic Value
73.57 EUR
Undervaluation 54%
Intrinsic Value
Price €33.6
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett