China United Network (600050.SS)
Communications · Shanghai · China
Fundamentals
Valuation and ratings
China United Network trades at CN¥4.28, which is 28% below the CN¥5.46 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 36 out of 100, which is little in the way of a 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 15.0 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 China United Network
China United Network Communications Limited, together with its subsidiaries, provides telecommunication services in the People's Republic of China. It offers broadband and mobile data services; value-added services, including text messaging, ringback tone, personalized ringback tone, caller ID, and secretarial services; and data and other internet application services, such as internet data centers, cloud computing, big data, Internet of Things, information, and communications services. It also sells communication terminals and communication products, including mobile phones and communications equipment. The company was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
600050.SS passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is China United Network (600050.SS) undervalued?
Against our discounted cash flow estimate of CN¥5.46, 600050.SS at CN¥4.28 is 28% 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 600050.SS's P/E ratio?
600050.SS trades at 15.0 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.