China Mobile Ltd. provides mobile telecommunications and related services in Mainland China and Hong Kong. The company was founded in 1997 and is based in Central, Hong Kong.
CHL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CHL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that China Mobile Ltd ranked in the 48th percentile in terms of potential gain offered. As for the metrics that stood out in our discounted cash flow analysis of China Mobile Ltd, consider:
Interest coverage, a measure of earnings relative to interest payments, is 44.74; that's higher than 96.17% of US stocks in the Communication Services sector that have positive free cash flow.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 7.29% of the free cash flow producing stocks we're observing.
CHL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 52.24% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ORAN, RCI, CCOI, GTT, and TSU can be thought of as valuation peers to CHL, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.
The Finnish company Nokia (NYSE:NOK) is caught in the middle of the escalating tension between China and the United States. And that may spell trouble for NOK stock. For the better part of five years, Nokia stock has been in a long-term decline. Most of this was due to the company taking the very necessary step of reinventing itself. Click to EnlargeSource: RistoH / Shutterstock.com And 5G looked like it was going to provide the catalyst the company needed. However, just as the company's fortunes looked to be changing, the emerging global tensions with China present a threat and an opportunity and the question is which one will affect NOK stock the most? The World Is Coming to Grips with the China PriceIn 2008, I read The China Price: The True Cost of Chinese Competitive Advantage....
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