Hunan Jiudian Pharmaceutical Co Ltd DCF Valuation - Hunan Jiudian Pharmaceutical Co Ltd - Alpha Spread

Hunan Jiudian Pharmaceutical Co Ltd
SZSE:300705

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Hunan Jiudian Pharmaceutical Co Ltd
SZSE:300705
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Price: 24.63 CNY 13.45% Market Closed
Market Cap: 12B CNY
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DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Oct 7, 2024.

Estimated DCF Value of one 300705 stock is 38.86 CNY. Compared to the current market price of 24.63 CNY, the stock is Undervalued by 37%.

DCF Value
Base Case
38.86 CNY
Undervaluation 37%
DCF Value
Price
Worst Case
Base Case
Best Case
38.86
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 38.86 CNY

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 3.7B CNY. The present value of the terminal value is 14.9B CNY. The total present value equals 18.6B CNY.
Forecast Period
Years
Discount Rate
%
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Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 18.6B CNY
+ Cash & Equivalents 497.5m CNY
+ Investments 240m CNY
Firm Value 19.3B CNY
- Debt 430.7m CNY
Equity Value 18.9B CNY
/ Shares Outstanding 486.5m
300705 DCF Value 38.86 CNY
Undervalued by 37%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
3.5B 7B
Operating Income
620.2m 1.5B
FCFF
586.6m 1.1B

See Also

Discover More

What is the DCF value of one 300705 stock?

Estimated DCF Value of one 300705 stock is 38.86 CNY. Compared to the current market price of 24.63 CNY, the stock is Undervalued by 37%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Hunan Jiudian Pharmaceutical Co Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 18.6B CNY.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 38.86 CNY per share.

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