ZTE Corp (000063) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of ZTE Corp stock ¥43.56, price ¥28.85, upside +51.0%, quality 43 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 2, 2026.
How to read this chart
60‑month range ¥19.16 – ¥53.38 · fair‑value band ¥21.24 – ¥58.19 · the ¥28.85 price screens below the ¥43.56 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 2, 2026.
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ZTE Corporation provides integrated information and communication technology solutions in the People's Republic of China, rest of Asia, Africa, Europe, America, and Oceania. It operates through three segments: Carriers' Networks, Consumer Business, and Government and Corporate Business.
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The Carriers' Networks segment provides wireless and wireline access, bearer systems, core networks, server and storage, and other technologies and product solutions.
The Consumer Business segment focuses on the development, production, and sale of home information terminals, smart phones, mobile internet terminals, and fusion terminals, as well as provides related software application and value added services.
The Government and Corporate Business segment offers informatization solutions for the government and corporations through the application of products, including communications networks, IoT, big data, and cloud computing.
The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.
Stock analysis
ZTE Corp (000063) currently trades at ¥28.85, while our model-based Fair Value estimate is ¥43.56, implying the stock looks roughly 34% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ¥25.77 per share, and 4 of the 26 models we run sit above the ¥28.85 price.
Bear case: the Growth DCF group reads lowest at ¥8.81, and 22 of the 26 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ¥21.24 (bear) to ¥58.19 (bull), the price of ¥28.85 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 43/100 (below-average quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
ZTE Corp reported revenue of 133B CNY in FY2025 versus 115B CNY in FY2021, a compound +3.9%/yr. Reported net income was 5.6B CNY in FY2025, compounding −4.7%/yr from FY2021.
Key figures
Market cap 140B CNY (≈ $21.0B) Large · P/E ratio 42.3 · P/S ratio 0.93 · EPS (TTM) ¥0.6700 · Dividend yield 1.4% · Net margin 2.9% · Return on equity 5.6% · Return on assets (EBIT) 4.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 33 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 37% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −43% fair-value upside, at 51%, 000063 screens cheaper than that median.
Fair Value models
Bear¥21.24Fair Value ¥43.56Bull¥58.19
Price ¥28.85 · Upside +51.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (¥0.2193 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF¥8.69¥18.56¥35.2475
Residual Income¥12.72¥13.49¥14.9075
Growth DCF¥8.59¥17.61¥32.3373
All 26 models by family
DCF Models
FCF DCF¥8.69¥18.56¥35.2475
Owner Earnings¥6.83¥15.26¥29.5071
5Y Revenue Exit¥3.98¥8.81¥15.1668
5Y EBITDA Exit¥13.64¥28.64¥47.5371
5Y P/E Exit¥15.14¥31.73¥50.7667
10Y Revenue Exit¥5.30¥10.38¥17.7963
10Y EBITDA Exit¥11.80¥24.68¥44.4164
10Y P/E Exit¥12.78¥26.90¥47.0660
Earnings-Based
Graham-Dodd¥7.89¥36.11¥49.5661
Lynch FV¥9.48¥13.54¥17.6058
PEG = 1.0¥9.48¥13.54¥17.6055
EPV¥0.4400¥1.17¥1.8067
Dividend Discount
Gordon GGM¥5.44¥11.02¥16.9664
DDM Multi-Stage¥5.44¥9.44¥11.6164
Multiples
P/E Multiple¥24.36¥32.48¥40.6061
P/S Multiple¥14.79¥19.72¥24.6556
P/B Multiple¥30.93¥41.24¥51.5553
EV/EBIT¥6.52¥10.36¥14.2163
EV/EBITDA¥16.89¥24.20¥31.5165
EV/Revenue¥0.8100¥3.31¥5.8147
Asset-Based
NCAV (Graham)¥0.2200¥0.3300¥0.420053
Growth DCF
Growth DCF¥8.59¥17.61¥32.3373
Rev-Margin DCF¥3.98¥8.81¥15.0569
Economic Profit
Residual Income¥12.72¥13.49¥14.9075
ROIC Compounder¥0.4400¥1.17¥1.8067
Growth Earnings
Growth-Adj P/E¥18.04¥25.77¥33.5066
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.56/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+10.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.6%
Start year 2020 (pandemic). Over 10 years: +2.9% a year
Revenue growth 31 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−0.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−2.3%
Dividend (yield on the price)1.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−2.3% vs 5.1%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.5% → 2%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+32.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+9.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (China: IMF forecast 1.7% a year to 2030, 1.4% from 2016 to 2025) that is about +30.7% a year for the price and +7.7% for the forecasts.
AI conclusion: ZTE demonstrates strength through rapid computing revenue growth from its AI push but shows weakness in sharply lower profits caused by transition costs and low net margins relative to sector potential.
Main risk: US export controls could restrict ZTE's access to key US-origin components and software, disrupting its supply chain for networking and computing equipment.
Bull case: ZTE could strengthen domestic partnerships and develop alternative supply chains to mitigate regulatory risks while using its connectivity expertise to deliver differentiated AI systems that win share from rivals.
Bear case: Persistent US restrictions and aggressive pricing by Huawei plus hyperscalers could erode ZTE's access to components and compress margins so severely that its computing pivot fails to offset weakness in traditional segments.
ZTE is pushing hard into computing and AI alongside its connectivity business, with computing revenue surging more than 50 percent year over year while overall profits fell sharply in the first half as the transition raises costs. Our models currently see the shares as undervalued during this shift. Will the new computing growth outpace the pressure on the traditional operator segment?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Communication Equipment · 301 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score43 · Below median
Fair Value upside+51.0% · Top 25%
Profitability
Return on equity (12 months)5.6% · Above median
Return on assets2.6% · Above median
Net margin (12 months)2.9% · Below median
Operating margin (12 months)2.0% · Below median
Growth and dividend
Revenue growth (quarter YoY)34.0% · Top 25%
Dividend yield (12 months)1.4% · Above median
Balance sheet
Debt / equity0.71× · Highest 25%
Valuation Multiplesvs Communication Equipment median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "ZTE Corp Fair Value". https://www.fairvalue-calculator.com/stock/000063
Frequently asked questions
Is ZTE Corp (000063) overvalued or undervalued?
As of Nov 2, 2026, our model estimates a fair value of ¥43.56 versus a price of ¥28.85, about +51% upside (undervalued).
What is the fair value of 000063?
Our model-based fair value for ZTE Corp is ¥43.56 (as of Nov 2, 2026), built from audited fundamentals. The current price: ¥28.85.
What is the quality score of 000063?
ZTE Corp has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for ZTE Corp (000063)?
Our model-based price target is the fair value of ¥43.56 (as of Nov 2, 2026) from 26 valuation models. Cautious scenario ¥21.24, optimistic scenario ¥58.19. It is a calculation from audited fundamentals, not an analyst target.
What is the ZTE Corp stock forecast for 2026?
Our models put fair value at ¥43.56, about +51% upside versus a price of ¥28.85 (undervalued). Cautious scenario ¥21.24, optimistic scenario ¥58.19. The calculation is refreshed regularly with new filings.
What is the revenue of ZTE Corp (000063)?
ZTE Corp reported trailing-twelve-month revenue of about 150B CNY (latest available figure, as of Nov 2, 2026).
Does ZTE Corp pay a dividend?
ZTE Corp currently shows a dividend yield of 1.42% relative to its recent price (as of Nov 2, 2026).
What growth is priced into ZTE Corp (000063)?
For today's price to be fair in a discounted-cash-flow model, ZTE Corp would have to grow free cash flow by +32.9 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.6 % per year. As of Nov 2, 2026.
What discount rate (WACC) does the fair value of 000063 use?
Our models discount ZTE Corp at 9.3 %: a base by market capitalisation (large), damped by beta 0.76, country premium for China. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For ZTE Corp that is +32.9 % per year a year over ten years, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has ZTE Corp (000063) delivered so far?
Over the past 5 years revenue at ZTE Corp grew +5.6 % a year. The price currently implies +32.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of ZTE Corp (000063) growing?
The median revenue growth in the sector is +11.3 % a year. That is the yardstick for the growth priced into ZTE Corp (+32.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of ZTE Corp (000063)?
The free-cash-flow yield on the price is 1.45 %: that much free cash flow ZTE Corp produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of ZTE Corp (000063)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For ZTE Corp it is ¥43.56 per share (as of Nov 2, 2026), against a price of ¥28.85. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is ZTE Corp stock overvalued or undervalued in 2026?
As of Nov 2, 2026, 000063 trades below its calculated fair value: price ¥28.85, fair value ¥43.56, a gap of about +51% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 000063?
No. The price is what the market pays today (¥28.85); the fair value is what the company's own numbers justify (¥43.56). For ZTE Corp the two are ¥14.71 per share apart. That gap is exactly why we show both numbers side by side.
How much is ZTE Corp worth?
The market values ZTE Corp at about 140B CNY (market capitalisation, as of Nov 2, 2026). Per share that is ¥28.85; our models calculate a fair value of ¥43.56 per share.
What do the bullish and bearish scenarios say about 000063?
Our models span a range for ZTE Corp: cautious scenario ¥21.24, base ¥43.56, optimistic ¥58.19 per share (as of Nov 2, 2026, price ¥28.85). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 000063?
ZTE Corp trades at a price-to-earnings ratio of 42.3 (as of Nov 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ¥43.56 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings: 25.1. Other multiples: PEG 0.4, P/B 1.9, P/S 0.9, EV/EBITDA 36.3.
What is the PEG ratio of 000063?
The PEG ratio of ZTE Corp is 0.37 (P/E divided by earnings growth, as of Nov 2, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of ZTE Corp (000063)?
Balance-sheet figures for ZTE Corp (as of Nov 2, 2026): return on equity 5.6%, debt of 0.71 per unit of equity. They feed the Quality Score of 43/100, which measures business quality independently of the share price.
How far is 000063 from its 52-week high?
ZTE Corp trades at ¥28.85, about 37% below its 52-week high of ¥45.74 and 8% above the low of ¥26.81 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ¥43.56 is for.
Which stocks are comparable to ZTE Corp?
From the same area (Technology) we also value Cisco Systems, Inc, Foxconn Industrial Internet Co, Zhongji Innolight Co, Motorola Solutions, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is ZTE Corp stock attractive at the current price?
The data as of Nov 2, 2026: price ¥28.85, calculated fair value ¥43.56 (+51%), Quality Score 43/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 000063 calculated?
We run ZTE Corp through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ¥43.56, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. ZTE Corp currently trades 34% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of ZTE Corp (000063)?
The closing price on Nov 5, 2026 was ¥28.85. Our model-based fair value is ¥43.56, about +51% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with ZTE Corp right now?
The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain. The model range is unusually wide (¥21.24 to ¥58.19). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Where does the earnings growth of ZTE Corp (000063) come from?
Earnings per share at ZTE Corp grew +9.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.6 %, EBIT margin +42.3 %, tax rate +1.0 %, residual (interest, one-offs) −26.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of ZTE Corp
How large is the market capitalisation of ZTE Corp (000063)?
The market capitalisation of ZTE Corp is 140B CNY (≈ $21.0B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of ZTE Corp (000063)?
The price-to-sales ratio of ZTE Corp is 0.93 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of ZTE Corp (000063)?
Earnings per share at ZTE Corp are ¥0.6700 (price ÷ EPS = P/E 42.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of ZTE Corp (000063)?
The dividend yield of ZTE Corp is 1.4% (payout 61.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of ZTE Corp (000063)?
The net margin of ZTE Corp is 2.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of ZTE Corp (000063)?
The return on equity (ROE) of ZTE Corp is 5.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of ZTE Corp (000063)?
On an EBIT basis the return on assets of ZTE Corp is 4.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of ZTE Corp (000063)?
The operating margin of ZTE Corp is 2.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at ZTE Corp (000063)?
Revenue at ZTE Corp is growing +34.0% versus a year earlier (3y avg +2.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at ZTE Corp (000063)?
Earnings per share at ZTE Corp are growing +350% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does ZTE Corp (000063) carry?
The net debt of ZTE Corp is 24.3B CNY (fiscal year 2025, ≈ 12.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 2, 2026