Shenzhen Kaifa Technology stock: fair value
000021.SZThe fair value of Shenzhen Kaifa Technology under our model is $1.75, the price is 134% above.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly overvaluedIn our model the price counts as cheap below $1.17 and expensive above $3.51 (uncertainty very high, based on the price swings of the past year).
The two parts of the fair value come to $1.52 (cash-flow model) and $1.99 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is above both.
Calculated with a cost of equity of 12.6%. At 13.6% the fair value would be $1.68, at 11.6% it would be $1.85.
Where the number comes from
Half from the cash-flow model, half from earnings times the industry P/E (17.1).
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 2.3%. Discounted at 12.6% (government bond yield 2.3% plus beta 2 times a risk premium of 5.1%); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $1.52 per share: free cash flow for the next ten years, each year discounted to today at 12.6%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 12.6%) |
|---|---|---|---|---|
| 2026 | $115.99M | extrapolated at 49.2% | 0.8882 | $103.02M |
| 2027 | $156.74M | extrapolated at 35.1% | 0.7889 | $123.64M |
| 2028 | $196.36M | extrapolated at 25.3% | 0.7006 | $137.58M |
| 2029 | $232.48M | extrapolated at 18.4% | 0.6223 | $144.67M |
| 2030 | $264.02M | extrapolated at 13.6% | 0.5527 | $145.93M |
| 2031 | $290.92M | extrapolated at 10.2% | 0.4909 | $142.82M |
| 2032 | $313.69M | extrapolated at 7.8% | 0.4360 | $136.77M |
| 2033 | $333.05M | extrapolated at 6.2% | 0.3873 | $128.98M |
| 2034 | $349.74M | extrapolated at 5.0% | 0.3440 | $120.3M |
| 2035 | $364.44M | extrapolated at 4.2% | 0.3055 | $111.33M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $1.3B |
| Terminal value: cash flow 2035 × (1 + 2.3%) / (12.6% − 2.3%) | $3.63B |
| Present value of terminal value (× 0.3055) | $1.11B |
| Equity value (sum plus present value of terminal value) | $2.4B |
| Shares (diluted) | 1.58B |
| Value per share (equity value divided by shares) | $1.52 |
| Earnings per share, last twelve months | $0.12 |
| × 17.1 (industry P/E) | $1.99 |
| Fair value (average of both parts) | $1.75 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = CN¥6.6683)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Weak, published since 7 Nov 2026 (in the score history since 16 Oct 2026)
- Valuation signal Overvalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.