Wuliangye Yibin (000858.SZ)
Consumer · Shenzhen · China
Fundamentals
Valuation and ratings
Wuliangye Yibin trades at CN¥74.51, which is 68% below the CN¥125.13 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 84 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 22.7 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 Wuliangye Yibin
Wuliangye Yibin Co.,Ltd. manufactures and sells liquor and wine products and related auxiliary products under the Wuliangye brand in China. The company's Wuliangye products include eighth-generation Wuliangye, 39 -degree Wuliangye, classic Wuliangye, 29 -degree Wuliangye, etc. It also offers other alcoholic beverage products, such as Wuliangchun, Wuliangchun, Wuliangtequ, Jianzhuang, etc. The company was founded in 1997 and is headquartered in Xuzhou, China.
000858.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 Wuliangye Yibin (000858.SZ) undervalued?
Against our discounted cash flow estimate of CN¥125.13, 000858.SZ at CN¥74.51 is 68% below 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 000858.SZ's P/E ratio?
000858.SZ trades at 22.7 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.