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Guizhou Zhenhua E-chem Inc
SSE:688707

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Guizhou Zhenhua E-chem Inc
SSE:688707
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Price: 16.48 CNY -1.9% Market Closed
Market Cap: ¥8.4B

EV/EBIT

-17.6
Current
62%
More Expensive
vs 3-y average of -10.9

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
-17.6
=
Enterprise Value
¥9B
/
EBIT
¥-593.4m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
-17.6
=
Enterprise Value
¥9B
/
EBIT
¥-593.4m

Valuation Scenarios

Guizhou Zhenhua E-chem Inc is trading above its 5-year average

If EV/EBIT returns to its 5-Year Average (15.4), the stock would be worth ¥-14.41 (187% downside from current price).

Statistics
Positive Scenarios
0/3
Maximum Downside
-383%
Maximum Upside
No Upside Scenarios
Average Downside
278%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple -17.6 ¥16.48
0%
5-Year Average 15.4 ¥-14.41
-187%
Industry Average 49.8 ¥-46.64
-383%
Country Average 28.9 ¥-27.06
-264%

Forward EV/EBIT
Today’s price vs future ebit

Not enough data available to calculate forward EV/EBIT

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
CN
Guizhou Zhenhua E-chem Inc
SSE:688707
8.4B CNY -17.6 -15.5
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
2T CNY 22 26.4
FR
Schneider Electric SE
PAR:SU
155.2B EUR 23.9 37.3
CH
Abb Ltd
SIX:ABBN
142B CHF 30.8 38.4
IE
Eaton Corporation PLC
NYSE:ETN
164.4B USD 33.3 40.2
US
Vertiv Holdings Co
NYSE:VRT
124.2B USD 61.1 79.7
US
Emerson Electric Co
NYSE:EMR
79.4B USD 23 34.4
KR
LG Energy Solution Ltd
KRX:373220
112.6T KRW 94.6 -104.9
JP
Fujikura Ltd
TSE:5803
10T JPY 57.5 69.4
US
AMETEK Inc
NYSE:AME
53.4B USD 27.9 36
FR
Legrand SA
PAR:LR
39.9B EUR 24.1 32.1
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
CN
Guizhou Zhenhua E-chem Inc
SSE:688707
Average EV/EBIT: 39.8
Negative Multiple: -17.6
N/A N/A
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
22
24%
0.9
FR
Schneider Electric SE
PAR:SU
23.9
14%
1.7
CH
Abb Ltd
SIX:ABBN
30.8
13%
2.4
IE
Eaton Corporation PLC
NYSE:ETN
33.3
16%
2.1
US
Vertiv Holdings Co
NYSE:VRT
61.1
40%
1.5
US
Emerson Electric Co
NYSE:EMR
23
14%
1.6
KR
LG Energy Solution Ltd
KRX:373220
94.6
70%
1.4
JP
Fujikura Ltd
TSE:5803
57.5
N/A N/A
US
AMETEK Inc
NYSE:AME
27.9
9%
3.1
FR
Legrand SA
PAR:LR
24.1
13%
1.9
P/E Multiple
Earnings Growth PEG
CN
Guizhou Zhenhua E-chem Inc
SSE:688707
Average P/E: 43.8
Negative Multiple: -15.5
N/A N/A
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
26.4
22%
1.2
FR
Schneider Electric SE
PAR:SU
37.3
23%
1.6
CH
Abb Ltd
SIX:ABBN
38.4
13%
3
IE
Eaton Corporation PLC
NYSE:ETN
40.2
19%
2.1
US
Vertiv Holdings Co
NYSE:VRT
79.7
43%
1.9
US
Emerson Electric Co
NYSE:EMR
34.4
25%
1.4
KR
LG Energy Solution Ltd
KRX:373220
Negative Multiple: -104.9 N/A N/A
JP
Fujikura Ltd
TSE:5803
69.4
44%
1.6
US
AMETEK Inc
NYSE:AME
36
14%
2.6
FR
Legrand SA
PAR:LR
32.1
14%
2.3

Market Distribution

Lower than 100% of companies in China
Percentile
0th
Based on 5 337 companies
0th percentile
-17.6
Low
0 — 16.6
Typical Range
16.6 — 52.9
High
52.9 —
Distribution Statistics
China
Min 0
30th Percentile 16.6
Median 28.9
70th Percentile 52.9
Max 49 021

Guizhou Zhenhua E-chem Inc
Glance View

Guizhou Zhenhua E-Chem Inc. engages in research and development, production, and sales of lithium-ion battery materials. The company is headquartered in Guiyang, Guizhou and currently employs 1,878 full-time employees. The company went IPO on 2021-09-14. The firm's products include nickel cobalt lithium manganate ternary cathode materials (NCM), such as medium nickel, medium high nickel and high nickel, lithium cobalt oxide (LCO) and composite ternary cathode materials. The firm's products are mainly used in the field of new energy vehicles and consumer electronics.

Intrinsic Value
7.46 CNY
Overvaluation 55%
Intrinsic Value
Price ¥16.48
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