Is There An Opportunity With Jiangsu Expressway Company Limited's (HKG:177) 27% Undervaluation?
Jiangsu Expressway Company Limited (HKG:177) is estimated to be 27% undervalued, with a fair value of HK$12.56 compared to the current share price of HK$9.14. Using the Dividend Discount Model, the analysis suggests that the stock is attractive for investment, despite the limitations of the DCF method. Key assumptions include a discount rate of 7.1% and a perpetual growth rate of 2.8%. The company shows potential for earnings growth, but faces challenges with debt coverage and dividend payouts.
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