Chenghe Acquisition III Co. (CHEC)

Financial Services · NGM

USD10.190.00% today

Fundamentals

Market capUSD175.86M
P/E ratio84.8
52-week rangeUSD9.91 to USD10.56

Valuation and ratings

DCF fair valueUSD4.07
Upside to fair value-60.1%
Moat score5/100
Overall rating7/100, Sell

Fair value: USD4.07 (-60.1%), see how we got there

Chenghe Acquisition III Co. trades at USD10.19, which is 60% above the USD4.07 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 5 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 84.8 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 Chenghe Acquisition III Co.

Chenghe Acquisition III Co. focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. Chenghe Acquisition III Co. was incorporated in 2024 and is based in Singapore.

Industry: Shell CompaniesHQ: Singapore

Common questions

Is Chenghe Acquisition III Co. (CHEC) undervalued?

Against our discounted cash flow estimate of USD4.07, CHEC at USD10.19 is 60% 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 CHEC's P/E ratio?

CHEC trades at 84.8 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.