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ZTE Corporation (000063) Fair Value & Analysis

Technology · CN · Market cap 192B CNY

ZC ZTE Corporation 000063 · SHE
Price¥34.70
Fair Value¥28.35
Upside-18.3%
Quality40/100
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Mixed Growth
Thin margins · 3.3% net margin
Moderate debt · generates free cash flow
Mixed vs. peers (7/14)
Narrow moat 34/100
Evidence: High Range ¥23.74 – ¥44.37 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from ¥15.76 to ¥28.35 (+79.9%) since Jul 7, 2026. Share price −3.0% over the past month.

Below-average quality, and screening another 18% overvalued on our models.

What matters now

  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (¥23.74 to ¥44.37) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥54.03 ¥19.40 Fair Value ¥28.35 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ¥19.40 – ¥54.03 · fair‑value band ¥23.74 – ¥44.37 · the ¥34.70 price screens above the ¥28.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

ZTE Corporation (000063) currently trades at ¥34.70, while our model-based Fair Value estimate is ¥28.35, implying the stock looks roughly 18.3% overvalued today. We read business quality at 40/100 (below-average quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, ZTE Corporation generated revenue of 136B CNY at a net margin of 3.3%. Revenue grew 6.1% year over year. It earns a return on equity of 5.9%. Net debt stands at 24.3B CNY. Fundamentals as of Jul 16, 2026

Our scenario range runs from ¥23.74 (bear case) to ¥44.37 (bull case); at ¥34.70, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 38% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -64% fair-value upside, at -18%, 000063 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥1.24 ¥5.18 ¥11.85 80
Residual Income ¥12.84 ¥13.66 ¥14.93 76
Rev-Margin DCF ¥1.55 ¥5.85 ¥11.39 74
All 26 models by family
DCF Models
FCF DCF ¥1.27 ¥5.55 ¥12.97 38
Owner Earnings ¥13.09 ¥26.82 ¥50.59 31
5Y Revenue Exit ¥1.55 ¥5.98 ¥12.02 39
5Y EBITDA Exit ¥7.53 ¥18.27 ¥31.90 41
5Y P/E Exit ¥8.51 ¥20.29 ¥33.87 38
10Y Revenue Exit ¥1.21 ¥5.39 ¥11.83 36
10Y EBITDA Exit ¥5.37 ¥14.38 ¥28.41 37
10Y P/E Exit ¥6.02 ¥15.85 ¥30.05 35
Earnings-Based
Graham-Dodd ¥7.89 ¥36.11 ¥49.56 54
Lynch FV ¥9.48 ¥13.54 ¥17.60 50
PEG = 1.0 ¥9.48 ¥13.54 ¥17.60 46
EPV ¥0.5700 ¥1.35 ¥2.03 59
Dividend Discount
Gordon GGM ¥5.60 ¥11.63 ¥18.46 70
DDM Multi-Stage ¥5.60 ¥9.81 ¥12.21 61
Multiples
P/E Multiple ¥17.40 ¥23.20 ¥29.00 63
P/S Multiple ¥14.79 ¥19.72 ¥24.65 58
P/B Multiple ¥14.79 ¥19.72 ¥24.65 55
EV/EBIT ¥4.57 ¥7.46 ¥10.35 53
EV/EBITDA ¥11.75 ¥17.03 ¥22.30 54
EV/Revenue ¥1.75 ¥4.25 ¥6.75 43
Asset-Based
NCAV (Graham) ¥7.79 ¥10.43 ¥15.57 50
Growth DCF
Growth DCF ¥1.24 ¥5.18 ¥11.85 80
Rev-Margin DCF ¥1.55 ¥5.85 ¥11.39 74
Economic Profit
Residual Income ¥12.84 ¥13.66 ¥14.93 76
ROIC Compounder ¥0.5700 ¥1.35 ¥2.03 72
Growth Earnings
Growth-Adj P/E ¥14.83 ¥21.19 ¥27.55 68

Widest divergence: Growth Earnings (¥21.19) versus Economic Profit (¥1.35). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 136B CNY
Revenue growth (YoY) +6.1%
Net margin 3.3%
Return on equity 5.9%
Free cash flow 2.0B CNY FY2025
P/E ratio 43.5
More key figures
Operating margin 5.1%
EPS (TTM) ¥0.9200
EPS growth (YoY) -47.1%
Net debt 24.3B CNY FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 42 · Market factors (momentum, volatility) 38

Profitability 33
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 72
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ZTE Corporation reported revenue of ¥133B in FY2025 versus ¥115B in FY2021, a compound +3.9%/yr. Reported net income was ¥5.6B in FY2025, compounding −4.7%/yr from FY2021.

Growth Quality 56/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
133B CNY
Latest YoY
+10.0%
Avg. growth/yr (3Y)
+2.8%
Avg. growth/yr (5Y)
+5.6%
Avg. growth/yr (31Y)
+23.4%
Revenue +3.9%/yr
FY21 ¥115B
FY22 ¥123B
FY23 ¥124B
FY24 ¥121B
FY25 ¥133B
Net income −4.7%/yr
FY21 ¥6.8B
FY22 ¥8.1B
FY23 ¥9.3B
FY24 ¥8.4B
FY25 ¥5.6B

000063 screens 18% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "ZTE Corporation Fair Value". https://www.fairvalue-calculator.com/stock/000063

Peer Group

Communication Equipment · 284 stocks

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.

Quality Score 40 · Bottom 25%
Fair Value upside −18% · Above median
Return on equity (TTM) 6% · Above median
Return on assets 1% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 6% · Above median
Debt / equity 0.71× · Higher than 75% of peers

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 43.5× · Pricier than median
P/B 2.54× · Pricier than median
P/S (TTM) 1.41× · Cheaper than median
P/FCF 14.1× · Pricier than median
EV/EBITDA 31.5× · Pricier than median
PEG 0.37× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 9 · sector 0
FUTURE 31 · sector 30
PAST 24 · sector 15
HEALTH 65 · sector 98
DIVIDEND 0 · sector 27

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Suzhou TFC Optical Communication Co 300394 ¥244.13 ¥32.04 -87%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
Ubiquiti Inc UI $545.95 $181.89 -67%

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Frequently asked questions

Is ZTE Corporation (000063) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ¥28.35 versus a price of ¥34.70, about −18% (overvalued).
What is the fair value of 000063?
Our model-based fair value for ZTE Corporation is ¥28.35 (as of Jul 16, 2026), built from audited fundamentals. The current price is ¥34.70.
What is the quality score of 000063?
ZTE Corporation has a Quality Score of 40/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of ZTE Corporation (000063)?
ZTE Corporation reported trailing-twelve-month revenue of about 136B CNY (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 000063?
The net profit margin of ZTE Corporation is about 3.3%, meaning it keeps roughly 3.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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