Shares of China Resources Beer (Holdings) Company Limited (SEHK:00291), a leading brewery in China, surged by 7.28% on Monday, September 30th, 2024, fueled by analysts' reports suggesting that the company's stock is potentially undervalued by a significant margin.
According to a discounted cash flow (DCF) analysis conducted by financial analysts, the estimated fair value of China Resources Beer's stock is HK$61.10, implying a potential 47% undervaluation based on the current share price of HK$32.30.
The DCF analysis took 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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