China Risun Group Limited’s (HKG:1907) Intrinsic Value Is Potentially 35% Above Its Share Price
Key Insights
- Using the Dividend Discount Model, China Risun Group fair value estimate is HK$3.20
- China Risun Group’s HK$2.36 share price signals that it might be 26% undervalued
- Peers of China Risun Group are currently trading on average at a 120% premium
Does the September share price for China Risun Group Limited (HKG:1907) reflect what it’s really worth? Today, we will estimate the stock’s intrinsic value by taking the expected future cash flows and discounting them to today’s value. This will be done using the Discounted Cash Flow (DCF) model. There’s really not all that much to it, even though it might appear quite complex.
Remember though, that there are many ways to estimate a company’s value, and a DCF is just one…
