SAIC Motor (600104.SS)
Consumer · Shanghai · China
Fundamentals
Valuation and ratings
SAIC Motor trades at CN¥10.46, which is 113% below the CN¥22.26 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 29 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 11.4 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 SAIC Motor
SAIC Motor Corporation Limited engages in the research and development, production, and sale of vehicles and their parts in the China and internationally. The company operates through Vehicles & Components and Financial Services segments. Its Vehicles & Components segment produces and sells complete vehicles and components. The Financial Services segment engages in financial services. SAIC Motor Corporation Limited was founded in 1997 and is based in Shanghai, the People's Republic of China. SAIC Motor Corporation Limited is a subsidiary of Shanghai Automotive Industry Corporation (Group) Corp.
600104.SS passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is SAIC Motor (600104.SS) undervalued?
Against our discounted cash flow estimate of CN¥22.26, 600104.SS at CN¥10.46 is 113% 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 600104.SS's P/E ratio?
600104.SS trades at 11.4 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.