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HUTCHMED (China) Ltd
LSE:HCM

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HUTCHMED (China) Ltd
LSE:HCM
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Price: 198.5 GBX -1.73%
Market Cap: £1.7B

P/E

5.2
Current
7%
Cheaper
vs 3-y average of 5.6

Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.

P/E
5.2
=
Market Cap
GBX21.4B
/
Net Income
$456.9m

Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.

P/E
5.2
=
Market Cap
GBX21.4B
/
Net Income
$456.9m

Valuation Scenarios

HUTCHMED (China) Ltd is trading below its 3-year average

If P/E returns to its 3-Year Average (5.6), the stock would be worth GBX213.54 (8% upside from current price).

Statistics
Positive Scenarios
3/3
Maximum Downside
No Downside Scenarios
Maximum Upside
+144%
Average Upside
82%
Scenario P/E Value Implied Price Upside/Downside
Current Multiple 5.2 GBX198.5
0%
3-Year Average 5.6 GBX213.54
+8%
Industry Average 10.1 GBX385.83
+94%
Country Average 12.7 GBX485.03
+144%

Forward P/E
Today’s price vs future net income

Today's Market Cap Net Income Forward P/E
GBX21.4B
/
Jan 2026
$456.9m
=
5.2
Current
GBX21.4B
/
Dec 2026
$58.9m
=
362.8
Forward
GBX21.4B
/
Dec 2027
$97m
=
220.2
Forward
GBX21.4B
/
Dec 2028
$149.4m
=
143
Forward
GBX21.4B
/
Dec 2029
$161.6m
=
132.2
Forward

Forward P/E shows whether today’s P/E still looks high or low once future net income are taken into account.

Peer Comparison

Market Distribution

Higher than 90% of companies in Hong Kong
Percentile
90th
Based on 1 249 companies
90th percentile
48.4
Low
0 — 8.8
Typical Range
8.8 — 19.3
High
19.3 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 8.8
Median 12.7
70th Percentile 19.3
Max 6 260.9

HUTCHMED (China) Ltd
Glance View

Market Cap
1.7B GBX
Industry
Pharmaceuticals

HUTCHMED (China) Ltd., a hybrid of innovation and tradition, stands at the intersection of global pharmaceutical ambitions and Chinese herbal expertise. Born out of a joint venture between Hutchison Whampoa and Chi-Med, the company has steadily carved out a niche by developing a dual-pronged business model that merges cutting-edge biotechnology with traditional Chinese medicine. This hybrid approach enables HUTCHMED to leverage the best of both worlds by combining the rich pharmacological heritage of China with modern scientific research. Its pipeline includes a range of drugs aimed at treating various cancers and immunological disorders, developed through deep-pocketed collaborations and alliances with multinational corporations. Revenue streams at HUTCHMED primarily flow from drug discoveries and developments that pass through rigorous clinical trials, reaching commercialization both in China and internationally. The company invests significantly in R&D to advance its pipeline, while also generating income through strategic partnerships that involve licensing agreements and joint ventures. This allows HUTCHMED not only to mitigate risks associated with drug development but also to tap into diverse markets by navigating a multifaceted regulatory landscape. By paving the way for western pharmaceutical technologies alongside traditional medicinal insights, HUTCHMED creates a sustainable growth trajectory in an ever-evolving global healthcare market.

HCM Intrinsic Value
266.19 GBX
Undervaluation 25%
Intrinsic Value
Price GBX198.5
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