Zhejiang Zheneng Electric Power stock: fair value
600023.SSThe fair value of Zhejiang Zheneng Electric Power under our model is $1.03, the price is 19% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Modestly undervaluedIn our model the price counts as cheap below $0.73 and expensive above $1.71 (uncertainty high, one part of the fair value is more than twice the other).
The two parts of the fair value come to $1.38 (cash-flow model) and $0.68 (industry comparison), and the gap between them shows how uncertain the estimate is.
Calculated with a cost of equity of 11.6%. At 12.6% the fair value would be $0.95, at 10.6% it would be $1.12.
Where the number comes from
Half from the cash-flow model, half from earnings times the industry P/E (22).
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 2.3%. Discounted at 11.6% (government bond yield 2.3% plus beta 1.8 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 $1.38 per share: free cash flow for the next ten years, each year discounted to today at 11.6%, 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 11.6%) |
|---|---|---|---|---|
| 2026 | $933.65M | extrapolated at 38.7% | 0.8963 | $836.8M |
| 2027 | $1.19B | extrapolated at 27.8% | 0.8033 | $958.19M |
| 2028 | $1.43B | extrapolated at 20.1% | 0.7200 | $1.03B |
| 2029 | $1.64B | extrapolated at 14.8% | 0.6453 | $1.06B |
| 2030 | $1.83B | extrapolated at 11.0% | 0.5784 | $1.06B |
| 2031 | $1.98B | extrapolated at 8.4% | 0.5184 | $1.03B |
| 2032 | $2.11B | extrapolated at 6.6% | 0.4646 | $980.46M |
| 2033 | $2.22B | extrapolated at 5.3% | 0.4164 | $925.36M |
| 2034 | $2.32B | extrapolated at 4.4% | 0.3732 | $865.91M |
| 2035 | $2.41B | extrapolated at 3.8% | 0.3345 | $805.41M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $9.55B |
| Terminal value: cash flow 2035 × (1 + 2.3%) / (11.6% − 2.3%) | $26.59B |
| Present value of terminal value (× 0.3345) | $8.9B |
| Equity value (sum plus present value of terminal value) | $18.44B |
| Shares (diluted) | 13.41B |
| Value per share (equity value divided by shares) | $1.38 |
| Earnings per share, last twelve months | $0.03 |
| × 22 (industry P/E) | $0.68 |
| Fair value (average of both parts) | $1.03 |
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 Neutral, published since 7 Nov 2026 (in the score history since 31 Oct 2026)
- Valuation signal Fairly valued since 7 Nov 2026, previously Undervalued
- 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.