Shares of China Resources Beer (Holdings) Company Limited (SEHK:291) soared by 5.26% on Monday, September 30th, 2024, as analysts highlighted the potential undervaluation of the company's stock based on a discounted cash flow (DCF) analysis.
According to a report from financial analysts, the estimated fair value of China Resources Beer's stock is HK$61.10, significantly higher than the current share price of HK$32.30. This suggests that the company's stock could be undervalued by as much as 47%.
The DCF analysis takes into account various factors, including the company's projected future cash flows, growth rates, discount rate, and terminal value. The analysts utilized growth rate estimates from industry experts and applied a discount rate of 6.1% to arrive at the estimated fair value.
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