China Unicom offers cellular and fixed-line voice and related value-added, broadband and other Internet-related, information communications technology, and business and data communications services in China. The company was founded in 2000 and is based in Central, Hong Kong.
CHU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CHU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CHINA UNICOM (HONG KONG) Ltd ranked in the 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 137.17%. The most interesting components of our discounted cash flow analysis for CHINA UNICOM (HONG KONG) Ltd ended up being:
As a business, CHU is generating more cash flow than 85.71% of positive cash flow stocks in the Communication Services.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 14.27% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CHU'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 44.94% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CHU, try SHEN, RBBN, ATUS, CEL, and HCHC.
FREMONT, Calif.--(BUSINESS WIRE)--Broadband Forum has further strengthened its board of directors, welcoming two new operators – Verizon and China Unicom – as its work to develop and standardize next-generation broadband services continues. Mike Talbert, of Verizon, and Ding Hai, of China Unicom, are the latest members to join the board which includes representatives from BT, Calix, CommScope, Deutsche Telekom, Ericsson, Huawei Technologies, InCoax, MaxLinear, Nokia, and Telecom Italia. Their a