China Southern Airlines Company Limited (ZNH) Company Bio
China Southern Airlines provides air transportation services in China and internationally. The company operates through Airline Transportation Operations and Other segments. The company was founded in 1995 and is based in Guangzhou, the Peoples Republic of China.
ZNH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ZNH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that China Southern Airlines Co Ltd ranked in the 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 31.33%. The most interesting components of our discounted cash flow analysis for China Southern Airlines Co Ltd ended up being:
The compound growth rate in the free cash flow of China Southern Airlines Co Ltd over the past 4 years is 0.03%; that's better than only 24.21% of cash flow producing equities in the Industrials sector, where it is classified.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately merely 22.82% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FSS, HURN, ITW, NSC, and PRGX can be thought of as valuation peers to ZNH, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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