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DHC Software Co Ltd
SZSE:002065

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DHC Software Co Ltd
SZSE:002065
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Price: 8.23 CNY Market Closed
Market Cap: ¥26.4B

P/FCFE

31.9
Current
33%
Cheaper
vs 3-y average of 47.5

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
31.9
=
Market Cap
¥26.4B
/
Free Cash Flow to Equity
¥826.3m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
31.9
=
Market Cap
¥26.4B
/
Free Cash Flow to Equity
¥826.3m

Valuation Scenarios

DHC Software Co Ltd is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (47.5), the stock would be worth ¥12.24 (49% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-17%
Maximum Upside
+91%
Average Upside
43%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 31.9 ¥8.23
0%
3-Year Average 47.5 ¥12.24
+49%
5-Year Average 47.5 ¥12.24
+49%
Industry Average 61 ¥15.72
+91%
Country Average 26.4 ¥6.8
-17%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
CN
DHC Software Co Ltd
SZSE:002065
26.4B CNY 31.9 54.5
US
International Business Machines Corp
NYSE:IBM
217.8B USD 17.4 20.3
JP
BrainPad Inc
TSE:3655
20.9T JPY 48.9 551.4
IE
Accenture PLC
NYSE:ACN
110.6B USD 9 14.5
IN
Tata Consultancy Services Ltd
NSE:TCS
9T INR 20.5 18.6
IN
Infosys Ltd
NSE:INFY
4.8T INR 16.9 17.3
JP
NTT Data Group Corp
DUS:NT5
30.3B EUR -121.6 38.8
JP
NTT Data Corp
TSE:9613
5.6T JPY -122.5 39.1
IN
HCL Technologies Ltd
NSE:HCLTECH
3.3T INR 22.9 20
JP
Fujitsu Ltd
TSE:6702
5.4T JPY -174.4 11.4
JP
NEC Corp
TSE:6701
5.4T JPY 48.1 21.9

Market Distribution

In line with most companies in China
Percentile
57th
Based on 5 086 companies
57th percentile
31.9
Low
0.2 — 13.7
Typical Range
13.7 — 52.8
High
52.8 —
Distribution Statistics
China
Min 0.2
30th Percentile 13.7
Median 26.4
70th Percentile 52.8
Max 2 279 450.9

DHC Software Co Ltd
Glance View

Market Cap
26.4B CNY
Industry
Technology

In the bustling landscape of China's tech sector, DHC Software Co. Ltd. emerges as a formidable player, capturing attention with its innovative solutions and strategic prowess. Founded in 1993 and headquartered in Beijing, the company began its journey with a clear vision to revolutionize information technology services within the Chinese market. DHC initially anchored itself by offering specialized software services, focusing on comprehensive IT solutions tailored for various industry verticals, particularly in finance, telecommunications, government, and healthcare sectors. These industries continuously seek cutting-edge software solutions to enhance efficiency and data management capabilities, creating a fertile ground for DHC's growth. DHC's business model revolves around providing an end-to-end suite of services, ranging from software development, system integration, to IT consulting. By leveraging their extensive expertise in these domains, DHC creates revenue streams primarily through the implementation and ongoing support of their software solutions, forging long-term partnerships with key clients. Their strategy encapsulates a mix of proprietary software offerings and custom solutions that are skillfully adapted to meet the specific needs of their clientele. This not only ensures steady cash flows from licensing and service fees but also fortifies customer relationships, anchoring DHC as a resilient entity in an ever-evolving technology ecosystem.

Intrinsic Value
6.7 CNY
Overvaluation 19%
Intrinsic Value
Price ¥8.23
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