<div id="readability-page-1"><div><ul> <li>If you are wondering whether Fosun International's share price reflects its underlying value, you are not alone. This article is designed to help you frame that question clearly.</li> <li>The stock last closed at HK$4.16, with returns of 0.2% over 7 days, a 5.0% decline over 30 days, a 5.2% decline year to date, and a 1.7% decline over 1 year. The 3 year and 5 year returns show declines of 43.4% and 61.6% respectively.</li> <li>These price moves have put valuation back on many investors' radar, especially as long term returns have been weak. That mix of short term stability and longer term declines raises questions about whether the current price reflects current expectations and risks.</li> <li>On Simply Wall St's valuation checks, Fosun International currently records a 6 out of 6 score. We will unpack this using several common valuation approaches before finishing with a different way of thinking about value that many investors find even more useful.</li> </ul> Find out why Fosun International's -1.7% return over the last year is lagging behind its peers. <h2>Approach 1: Fosun International Discounted Cash Flow (DCF) Analysis</h2> A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those back to a present value. It is essentially asking what all of Fosun International's future cash generation is worth in today's money. For Fosun International, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month free cash flow is CN¥20,403.53m. Simply Wall St uses analyst estimates where available, then extends them, with a projected free cash flow of CN¥35,704m for 2023 and a series of extrapolated figures through to 2035. Taking those CN¥ cash flows, discounting them back and aggregating the result, the model arrives at an estimated intrinsic value of HK$176.95 per share. Compared with the recent share price of HK$4.16, the DCF output implies the shares trade at a very large discount, with the intrinsic discount reported at 97.6% undervalued. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Fosun International is undervalued by 97.6%. Track this in your watchlist or portfolio, or discover 875 more undervalued stocks based on cash flows. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abe1c672-0953-425c-b4f3-92d97d0f915b/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abe1c672-0953-425c-b4f3-92d97d0f915b/chart/dcf"/><figcaption>656 Discounted Cash Flow as at Feb 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Fosun International. <h2>Approach 2: Fosun International Price vs Sales</h2> For companies where earnings can be volatile, the P/S ratio is often a useful way to think about value because it compares the share price to the revenue the business generates, rather than to its net profit. You are essentially asking how much investors are paying for each unit of sales. What counts as a &#34;normal&#34; P/S ratio usually reflects what investors expect for future growth and how much risk they see in the business. Higher growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk tends to support a lower one. Fosun International currently trades on a P/S ratio of 0.17x. This is below both the Industrials industry average of 0.86x and the peer group average of 1.10x. Simply Wall St also calculates a proprietary Fair Ratio of 0.83x for Fosun International, which is the P/S multiple it considers reasonable given factors such as the company’s growth profile, profit margins, industry, market cap and specific risk characteristics. The Fair Ratio is more tailored than a simple peer or industry comparison because it adjusts for these business specific drivers rather than assuming one size fits all. With the current P/S at 0.17x compared with a Fair Ratio of 0.83x, Fosun International appears materially cheaper than that Fair Ratio benchmark. Result: UNDERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abe1c672-0953-425c-b4f3-92d97d0f915b/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abe1c672-0953-425c-b4f3-92d97d0f915b/chart/ps-multiple-vs-industry"/><figcaption>SEHK:656 P/S Ratio as at Feb 2026</figcaption></figure> P/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1426 companies where insiders are betting big on explosive growth. <h3>Upgrade Your Decision Making: Choose your Fosun International Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your view of Fosun International’s story linked directly to your own numbers for future revenue, earnings, margins and fair value. Instead of only accepting a single model output, a Narrative lets you set assumptions, see how those flow into a forecast, and then see the fair value that drops out, so the storyline and the spreadsheet always match. On Simply Wall St, Narratives are available on the Community page, where millions of investors share different views, and the platform continually refreshes those Narratives when new information such as news or earnings is added. This gives you a practical way to compare your view of Fosun International’s fair value with the current share price, which can help you decide whether you see it as an opportunity to add, trim or watch from the sidelines. For example, one Fosun International Narrative might assume a relatively cautious fair value and modest growth, while another might see a much higher fair value based on stronger revenue and margin assumptions, yet both are easy to compare on the same Community page. Do you think there's more to the story for Fosun International? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abe1c672-0953-425c-b4f3-92d97d0f915b/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/abe1c672-0953-425c-b4f3-92d97d0f915b/chart/quote-price"/><figcaption>SEHK:656 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.</div></div>

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Fosun International's share price has declined significantly, closing at HK$4.16, with a 1.7% drop over the past year. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 97.6%, with an intrinsic value of HK$176.95 per share. Additionally, the Price-to-Sales (P/S) ratio stands at 0.17x, below industry averages, indicating it is materially cheaper than its fair value benchmark of 0.83x. Investors are encouraged to consider different valuation narratives to better understand the company's potential.

Is Fosun International (SEHK:656) Offering Value After Prolonged Share Price Declines