Using a parallel logic to that of the Cercius China Composite Index, we have developed methodology for assessing the value of mainland-listed equities. We measure whether a stock is undervalued, fairly valued, or overvalued. Unlike the Cercius China Composite Index, we apply our Equity Valuation on a case-by-case basis. Among the multitude of factors and variables we analyze for this Equity Valuation, we look at for example, the reputation of a company, and the board’s relationship with the Chinese Communist Party leadership.
The main purpose of the equity valuation is to estimate the value of a firm or its stock. Most equity valuations take into account pre-defined fundamentals – mostly financials – in order to evaluate a given stock or security.
Contrary to our competitors – who use one of the three main methods (i.e. DFC; comparative analysis or transactions record) – we use our own in-house tools and techniques, that were especially designed for the Chinese market, in order to provide an assessment for our clients.
The Cercius China Equity Valuation focuses on four main variables subdivided into 12 specific data points. Each data point carries a specific weight. Some of the data points we measure include the State’s discourse on the sector/industry of the specific stock, potential international sanctions exposure, and the Party’s relationship with the company’s leadership.
The Cercius China Equity Valuation is only offered on publicly listed and non-publicly traded company in mainland China.
The Cercius China Equity Valuation is available:
1. On a case-by-case basis for clients looking for evaluation one or several Chinese stocks; or
2. On a yearly retainer basis with a set amount of equities to be selected by the client.
Please contact us directly for pricing options.
To request a sample of the Cercius China Equity Valuation or if you have any questions on this product, please contact us through our website or any of our social media platforms.