Noah Holdings operates as a wealth management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. The company was founded in 2005 and is based in Shanghai, China.
NOAH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Noah Holdings Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Noah Holdings Ltd ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NOAH, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 2,440.94; that's higher than 99.52% of US stocks in the Financial Services sector that have positive free cash flow.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than only 14.89% of the free cash flow producing stocks we're observing.
NOAH'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 48.73% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NOAH, try RDN, ELVT, LFC, GCAP, and FRHC.
Chairlady Wang and I are very happy to report to you about our first quarter performance. First, let me hand it over to Chairlady Wang to share with you the performances of Noah for the first quarter in 2020.
Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises, today announced its unaudited financial results for the first quarter of 2020.