Sichuan Chuantou Energy stock: fair value
600674.SSThe fair value of Sichuan Chuantou Energy under our model is $5.30, the price is 50% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly undervaluedIn our model the price counts as cheap below $3.79 and expensive above $8.84 (uncertainty high, one part of the fair value is more than twice the other).
The two parts of the fair value come to $7.26 (cash-flow model) and $3.35 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is below both.
Calculated with a cost of equity of 9.5%. At 10.5% the fair value would be $4.80, at 8.5% it would be $5.98.
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 9.5% (government bond yield 2.3% plus beta 1.4 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 $7.26 per share: free cash flow for the next ten years, each year discounted to today at 9.5%, 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 9.5%) |
|---|---|---|---|---|
| 2026 | $880.2M | extrapolated at 65.5% | 0.9131 | $803.72M |
| 2027 | $1.29B | extrapolated at 46.5% | 0.8338 | $1.08B |
| 2028 | $1.72B | extrapolated at 33.3% | 0.7613 | $1.31B |
| 2029 | $2.13B | extrapolated at 24.0% | 0.6952 | $1.48B |
| 2030 | $2.5B | extrapolated at 17.5% | 0.6348 | $1.59B |
| 2031 | $2.83B | extrapolated at 12.9% | 0.5796 | $1.64B |
| 2032 | $3.1B | extrapolated at 9.7% | 0.5292 | $1.64B |
| 2033 | $3.33B | extrapolated at 7.5% | 0.4833 | $1.61B |
| 2034 | $3.53B | extrapolated at 5.9% | 0.4413 | $1.56B |
| 2035 | $3.71B | extrapolated at 4.9% | 0.4029 | $1.49B |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $14.2B |
| Terminal value: cash flow 2035 × (1 + 2.3%) / (9.5% − 2.3%) | $52.61B |
| Present value of terminal value (× 0.4029) | $21.2B |
| Equity value (sum plus present value of terminal value) | $35.4B |
| Shares (diluted) | 4.87B |
| Value per share (equity value divided by shares) | $7.26 |
| Earnings per share, last twelve months | $0.15 |
| × 22 (industry P/E) | $3.35 |
| Fair value (average of both parts) | $5.30 |
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 16 Jan 2026)
- Valuation signal Undervalued 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.