Zheshang Securities stock: fair value
601878.SSThe fair value of Zheshang Securities under our model is $0.89, the price is 47% 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 $0.74 and expensive above $1.11 (uncertainty low, based on the price swings of the past year).
The two parts of the fair value come to $0.62 (excess return model) and $1.15 (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 10.8%. At 11.8% the fair value would be $0.85, at 9.8% it would be $0.93.
Where the number comes from
Half from the excess return model, half from earnings times the industry P/E (12.4).
Excess return model for banks and insurers: book value plus the value of returns above the cost of equity of 10.8% (government bond yield 2.3% plus beta 1.66 times a risk premium of 5.1%).
Calculate with your own assumptionsThe calculation step by step
With these figures the excess return model arrives at $0.62 per share: book value plus the value of what the company earns above its cost of equity over time. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Step | Value |
|---|---|
| Book value per share | $1.27 |
| Stable earnings per share (book value × median return on equity of the last five fiscal years) | $0.08 |
| Return on equity in the model (median of the last five fiscal years) | 6.5% |
| Cost of equity | 10.8% |
| Excess return per share: (return − cost) × book value | −$0.06 |
| Terminal value of excess returns: excess return / (10.8% − 2.3%) | −$0.65 |
| Value per share (book value plus terminal value) | $0.62 |
| Earnings per share, last twelve months | $0.09 |
| × 12.4 (industry P/E) | $1.15 |
| Fair value (average of both parts) | $0.89 |
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 since 13 Nov 2026, previously Neutral
- 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.