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Zhengzhou Coal Mining Machinery Group Co Ltd
SSE:601717

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Zhengzhou Coal Mining Machinery Group Co Ltd
SSE:601717
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Price: 18.67 CNY -9.98%
Market Cap: ¥33.3B

EV/FCFF

36.1
Current
139%
More Expensive
vs 3-y average of 15.1

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
36.1
=
Enterprise Value
¥34B
/
Free Cash Flow to Firm
¥848.9m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
36.1
=
Enterprise Value
¥34B
/
Free Cash Flow to Firm
¥848.9m

Valuation Scenarios

Zhengzhou Coal Mining Machinery Group Co Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (15.1), the stock would be worth ¥7.82 (58% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-66%
Maximum Upside
+6%
Average Downside
35%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 36.1 ¥18.67
0%
3-Year Average 15.1 ¥7.82
-58%
5-Year Average 12.4 ¥6.42
-66%
Industry Average 38.2 ¥19.76
+6%
Country Average 28.8 ¥14.91
-20%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close

Market Distribution

In line with most companies in China
Percentile
58th
Based on 4 731 companies
58th percentile
36.1
Low
0 — 14.5
Typical Range
14.5 — 57
High
57 —
Distribution Statistics
China
Min 0
30th Percentile 14.5
Median 28.8
70th Percentile 57
Max 307 555.7

Zhengzhou Coal Mining Machinery Group Co Ltd
Glance View

Zhengzhou Coal Mining Machinery Group Co., Ltd, hailing from the heart of China's industrial landscape, is a company deeply rooted in the world of heavy machinery, serving as the bedrock for the coal mining industry. Established in 1958, this enterprise has woven itself into the fabric of China's economic tapestry by specializing in the research, development, and production of coal mining and excavating equipment. The company has become a linchpin for coal miners, offering an expansive suite of products that include hydraulic roof supports, armored-face conveyors, and electrical control systems. These products serve the essential function of extracting coal efficiently and safely from the earth, enabling the heavily relied-upon sector of energy production to continue thriving in a country that boasts some of the largest coal reserves in the world. The lifeblood of Zhengzhou Coal Mining Machinery Group revolves around its ability to innovate and adapt to an ever-changing industry. As China, and indeed the world, began to shift its gaze towards more sustainable energy sources, the company has diversified its portfolio to remain a formidable player on the global stage. Besides catering to the coal mining industry, it has ventured into producing auto parts, extending its technological craftsmanship to the automotive sector and effectively broadening its revenue streams. Thus, while its historical core lies in coal mining machinery, Zhengzhou Coal Mining Machinery Group is astutely navigating the tempestuous waters of modern industry trends by embracing technology development and diversification, therefore shaping itself as a resilient player in delivering essential machinery components across multiple sectors.

Intrinsic Value
41.75 CNY
Undervaluation 55%
Intrinsic Value
Price ¥18.67
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