SINOPEC Shangai Petrochemical Company, Ltd. (SHI) Company Bio
Sinopec Shanghai Petrochemical operates as a refining-chemical integrated petrochemical company in China. The company operates through five segments: Synthetic Fibres, Resins and Plastics, Intermediate Petrochemicals, Petroleum Products, and Trading of Petrochemical Products. The company was founded in 1972 and is based in Shanghai, China.
SHI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sinopec Shanghai Petrochemical Co Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sinopec Shanghai Petrochemical Co Ltd ranked in the 16th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 81.5%. The most interesting components of our discounted cash flow analysis for Sinopec Shanghai Petrochemical Co Ltd ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 100. Notably, its equity weight is greater than 98.42% of US equities in the Energy sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 2.08% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SHI'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 64.53% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SHI, try CEO, GBR, BP, ERF, and APA.
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Sinopec Shanghai Petrochemical Company Limited (the "Company") (HKEx: 338; SSE: 600688;NYSE: SHI) announced today that its Form 20-F for the fiscal year ended December 31, 2019, filed with the United States Securities and Exchange Commission on April 29, 2020, has been posted to the Company's website at http://www.spc-ir.com.hk/eng/report.asp. The soft copy of the Company's annual report on Form 20-F could also be downloaded through its website.
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Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company", together with its subsidiaries known as the "Group") (HKEX: 00338; SSE: 600688; NYSE: SHI) today announced the annual results for the twelve months ended 31 December 2019 (the "Period").
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