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Eastern Communications Co Ltd
SSE:600776

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Eastern Communications Co Ltd
SSE:600776
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Price: 16.62 CNY -2.46% Market Closed
Market Cap: ¥20.9B

EV/IC

9.6
Current
130%
More Expensive
vs 3-y average of 4.2

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
9.6
=
Enterprise Value
¥19B
/
Invested Capital
¥1.9B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
9.6
=
Enterprise Value
¥19B
/
Invested Capital
¥1.9B

Valuation Scenarios

Eastern Communications Co Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (4.2), the stock would be worth ¥7.22 (57% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-80%
Maximum Upside
No Upside Scenarios
Average Downside
63%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 9.6 ¥16.62
0%
3-Year Average 4.2 ¥7.22
-57%
5-Year Average 4.2 ¥7.22
-57%
Industry Average 4 ¥7
-58%
Country Average 1.9 ¥3.35
-80%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
CN
Eastern Communications Co Ltd
SSE:600776
20.9B CNY 9.6 45.6
JP
Nakayo Inc
TSE:6715
111.4T JPY 7 835.5 7 956 708
US
Cisco Systems Inc
NASDAQ:CSCO
362.9B USD 3.5 32.8
US
Arista Networks Inc
NYSE:ANET
217B USD 25.5 61.8
CN
Zhongji Innolight Co Ltd
SZSE:300308
952.8B CNY 35.6 63.7
US
Ciena Corp
NYSE:CIEN
75.7B USD 18.8 330.6
US
Motorola Solutions Inc
NYSE:MSI
72.2B USD 4.7 33.5
FI
Nokia Oyj
OMXH:NOKIA
59.3B EUR 2 75.8
US
Lumentum Holdings Inc
NASDAQ:LITE
67.8B USD 20.1 268.7
US
Ubiquiti Inc
NYSE:UI
61.7B USD 57.8 69
CN
Yangtze Optical Fibre and Cable Joint Stock Ltd Co
SSE:601869
290.9B CNY 11.6 357.5

Market Distribution

Higher than 92% of companies in China
Percentile
92st
Based on 7 566 companies
92st percentile
9.6
Low
0 — 1.1
Typical Range
1.1 — 3.4
High
3.4 —
Distribution Statistics
China
Min 0
30th Percentile 1.1
Median 1.9
70th Percentile 3.4
Max 1 129 391.6

Eastern Communications Co Ltd
Glance View

Market Cap
20.9B CNY
Industry
Communications

Eastern Communications Co Ltd., a company rooted in the rich industrial fabric of China, has emerged as a pivotal player in the telecommunication and information technology sectors. Established in an era when communication technology was rapidly evolving, the company swiftly embraced innovation to carve out its niche. Today, it stands at the forefront of developing and deploying high-tech communication solutions, capitalizing on a wide array of products and services. Its offerings range from enterprise-level communication networks to consumer broadband services, seamlessly catering to both large-scale corporate clients and individual consumers. By leveraging its extensive infrastructure and technological expertise, Eastern Communications has managed to tap into the surging demand for reliable connectivity, riding the wave of digital transformation that is sweeping across industries worldwide. The company's revenue model is underpinned by a robust and diversified portfolio that spans multiple streams. Eastern Communications generates income through its telecommunications services, which include providing broadband internet, data services, and comprehensive IT solutions. Additionally, the company has cultivated a strong foothold in the production and distribution of communication hardware, bolstering its presence in both domestic and international markets. Strategic partnerships and continual investment in research and development further enhance its competitive edge, allowing the firm to adapt to the fast-paced changes in technology and consumer preferences. By adeptly balancing these segments, Eastern Communications ensures a steady flow of revenue while positioning itself for long-term growth and leadership in the telecommunications industry.

Intrinsic Value
6.71 CNY
Overvaluation 60%
Intrinsic Value
Price ¥16.62
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