Hongfa Technology Co Ltd
SSE:600885
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (17.4), the stock would be worth ¥33.16 (15% upside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 15.2 | ¥28.92 |
0%
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| 3-Year Average | 17.4 | ¥33.16 |
+15%
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| 5-Year Average | 22 | ¥41.84 |
+45%
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| Industry Average | 49.8 | ¥94.89 |
+228%
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| Country Average | 28.8 | ¥54.93 |
+90%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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¥36.2B
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/ |
Jan 2026
¥2.8B
|
= |
|
|
¥36.2B
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/ |
Dec 2026
¥4.2B
|
= |
|
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¥36.2B
|
/ |
Dec 2027
¥4.8B
|
= |
|
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¥36.2B
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/ |
Dec 2028
¥5.6B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| CN |
|
Hongfa Technology Co Ltd
SSE:600885
|
44.8B CNY | 15.2 | 25.5 | |
| CN |
|
Contemporary Amperex Technology Co Ltd
SZSE:300750
|
2T CNY | 22 | 26.4 | |
| FR |
|
Schneider Electric SE
PAR:SU
|
155.2B EUR | 19.3 | 37.3 | |
| CH |
|
Abb Ltd
SIX:ABBN
|
142B CHF | 27 | 38.4 | |
| IE |
|
Eaton Corporation PLC
NYSE:ETN
|
164.4B USD | 27.9 | 40.2 | |
| US |
|
Vertiv Holdings Co
NYSE:VRT
|
124.2B USD | 52.2 | 79.7 | |
| US |
|
Emerson Electric Co
NYSE:EMR
|
79.4B USD | 16.4 | 34.4 | |
| KR |
|
LG Energy Solution Ltd
KRX:373220
|
112.6T KRW | 25.3 | -104.9 | |
| JP |
|
Fujikura Ltd
TSE:5803
|
10T JPY | 50.8 | 69.4 | |
| US |
|
AMETEK Inc
NYSE:AME
|
53.4B USD | 22.9 | 36 | |
| FR |
|
Legrand SA
PAR:LR
|
39.9B EUR | 19.7 | 32.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 16.3 |
| Median | 28.8 |
| 70th Percentile | 53.1 |
| Max | 49 021 |
Other Multiples
Hongfa Technology Co Ltd
Glance View
In the bustling corridors of Shenzhen, a silent force in the electrical components industry has been quietly steering the course of innovation and connectivity: Hongfa Technology Co. Ltd. Founded in 1984, this company emerged as a crucial player in the design and manufacturing of relays, a fundamental component in electrical circuit systems. Hongfa's journey began with a focus on quality and efficiency, which propelled it to gradually expand its offerings into areas like switching equipment, precision parts, automatic production lines, and even new fields such as intelligent power grids and new energy vehicles. Through relentless dedication to research and development, Hongfa established itself as a top manufacturer, supporting an array of industries worldwide, from telecommunications to automotive, seamlessly linking technologies that drive modern economies. Revenue rivers flow through Hongfa's business model by leveraging its wide-reaching manufacturing prowess and comprehensive product lines. The company's value proposition lies in its ability to deliver high-performance, reliable products that cater to a diverse array of sectors—each seeking solutions to enhance their operational efficiency. With a global distribution network, Hongfa earns its keep by selling components that serve as the backbone for high-stakes operations, such as those in industrial automation and smart appliances. Its sustained commitment to innovation and quality underpins its competitive edge, allowing it to maintain significant market shares both domestically within China and across international territories, while consistently returning value to its shareholders through strategic business expansions and technological advancements.