Luzhou Laojiao (000568.SZ)
Consumer · Shenzhen · China
Fundamentals
Valuation and ratings
Luzhou Laojiao trades at CN¥84.99, which is 32% above the CN¥57.38 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 82 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 11.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Luzhou Laojiao
Luzhou Laojiao Co.,Ltd, together with its subsidiaries, produces and sells alcoholic products in China and internationally. The company offers liquor products; and cellar-aged, red, and health wine under the Guojiao 1573, Luzhou Laojiao Special Liquor, Centennial Luzhou Laojiao Cellar-aged Liquor, Luzhou Laojiao Touqu, Luzhou Laojiao Black Cap, Gaoguang, Luzhou Laojiao 1952, Luzhou Laojiao Tequ, Touqu, and Heigai brands. It is also involved in the sales of fruit wine; cultivation and sale of agricultural products; import and export of food and alcoholic beverages; and technology and business development services. In addition, the company provides support services comprising contact district, advertising and procurement platforms, online consultation, and service platforms. Luzhou Laojiao Co.,Ltd was founded in 1950 and is headquartered in Luzhou, China.
000568.SZ passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Luzhou Laojiao (000568.SZ) undervalued?
Against our discounted cash flow estimate of CN¥57.38, 000568.SZ at CN¥84.99 is 32% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 000568.SZ's P/E ratio?
000568.SZ trades at 11.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.