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China Everbright Environment Group (0257) Fair Value & Analysis

Industrials · HK · Market cap HK$28.0B

CE China Everbright Environment Group 0257 · HK
PriceHK$4.96
Fair ValueHK$9.36
Upside+88.9%
Quality62/100
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Weak Growth
Solidly profitable · 14.3% net margin
Moderate debt · generates free cash flow
5.74% dividend yield
Ranks above peers (12/14)
Moderate moat 58/100
Evidence: Medium Range HK$7.13 – HK$14.22 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 8 days ago

Share price +5.9% over the past month.

A solid business, screening 89% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$7.13). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$7.13 to HK$14.22) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$5.73 HK$2.04 Fair Value HK$9.36 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$2.04 – HK$5.73 · fair‑value band HK$7.13 – HK$14.22 · the HK$4.96 price screens below the HK$9.36 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

China Everbright Environment Group (0257) currently trades at HK$4.96, while our model-based Fair Value estimate is HK$9.36, implying the stock looks roughly 88.9% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, China Everbright Environment Group generated revenue of HK$27.5B at a net margin of 14.3%. Revenue declined 9.8% year over year. It earns a return on equity of 6.5%. Net debt stands at HK$85.9B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$7.13 (bear case) to HK$14.22 (bull case); at HK$4.96, the current price sits below 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 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 14% below its 52-week high and 33% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -40% fair-value upside, at 89%, 0257 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 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. Evidence
Highest evidence
Growth DCF HK$18.32 HK$41.39 HK$87.38 80
Residual Income HK$7.06 HK$7.56 HK$8.46 76
Rev-Margin DCF HK$4.10 HK$12.77 HK$25.95 74
All 26 models by family
DCF Models
FCF DCF HK$19.88 HK$36.44 HK$87.81 38
Owner Earnings HK$3.61 HK$18.19 HK$48.79 31
5Y Revenue Exit HK$4.10 HK$10.49 HK$22.89 39
5Y EBITDA Exit HK$12.00 HK$27.10 HK$55.36 41
5Y P/E Exit HK$7.36 HK$20.98 HK$38.38 38
10Y Revenue Exit HK$8.36 HK$19.92 HK$28.69 36
10Y EBITDA Exit HK$14.25 HK$35.74 HK$75.32 37
10Y P/E Exit HK$10.93 HK$26.44 HK$52.64 35
Earnings-Based
Graham-Dodd HK$4.55 HK$31.70 HK$44.49 54
Lynch FV HK$10.41 HK$14.87 HK$19.33 50
PEG = 1.0 HK$10.41 HK$14.87 HK$19.33 46
EPV HK$3.79 HK$5.72 HK$7.42 59
Dividend Discount
Gordon GGM HK$2.20 HK$4.58 HK$7.27 70
DDM Multi-Stage HK$2.20 HK$3.86 HK$4.81 61
Multiples
P/E Multiple HK$10.53 HK$14.04 HK$17.55 63
P/S Multiple HK$6.72 HK$8.96 HK$11.20 58
P/B Multiple HK$8.52 HK$11.37 HK$14.21 55
EV/EBIT HK$9.68 HK$15.52 HK$21.36 53
EV/EBITDA HK$9.10 HK$14.74 HK$20.38 54
EV/Revenue HK$0.2400 HK$2.66 43
Asset-Based
NCAV (Graham) HK$4.25 HK$5.70 HK$8.50 50
Growth DCF
Growth DCF HK$18.32 HK$41.39 HK$87.38 80
Rev-Margin DCF HK$4.10 HK$12.77 HK$25.95 74
Economic Profit
Residual Income HK$7.06 HK$7.56 HK$8.46 76
ROIC Compounder HK$3.79 HK$5.72 HK$7.42 72
Growth Earnings
Growth-Adj P/E HK$13.80 HK$19.71 HK$25.62 68

Widest divergence: DCF Models (HK$20.98) versus Dividend Discount (HK$3.86). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$27.5B
Revenue growth (YoY) -9.8%
Net margin 14.3%
Return on equity 6.5%
Free cash flow HK$10.3B FY2025
P/E ratio 7.1
More key figures
Operating margin 28.9%
EPS (TTM) HK$0.3600
Dividend yield 5.7%
EPS growth (YoY) +86.1%
Net debt HK$85.9B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 57 · Market factors (momentum, volatility) 60

Profitability 29
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 96
Earnings quality: real cash, not paper profit
Fin. Strength 17
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 82
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

China Everbright Environment Group Limited, an investment holding company, provides environmental solutions worldwide. The company's Environmental Energy Project Construction and Operation segment constructs and operates food and kitchen waste treatment, leachate and fecal treatment, sludge treatment and disposal, fly ash landfill, medical waste, and solid …

Full company description

China Everbright Environment Group Limited, an investment holding company, provides environmental solutions worldwide. The company's Environmental Energy Project Construction and Operation segment constructs and operates food and kitchen waste treatment, leachate and fecal treatment, sludge treatment and disposal, fly ash landfill, medical waste, and solid waste treatment projects, as well as waste-to-energy and methane-to-energy plants. It also provides integrated urban, waste sorting, technical consultancy and engineering design, renewable resources utilization, and sanitation operation services. Its Greentech Project Construction and Operation segment constructs and operates integrated biomass utilization, hazardous and solid waste treatment, and solar energy and wind power projects, as well as offers environmental remediation services. The company's Environmental Water Project Construction and Operation segment constructs, upgrades, and operates wastewater treatment plants; water supply and reusable water treatment plants; and sponge city construction, sludge treatment and disposal, leachate treatment, river-basin ecological restoration, and wastewater source heat pump projects. It also researches and develops water environment technologies and engineering projects. Its Others segment conducts environmental protection technology research and development projects; provides environmental related technological, and protection project equipment construction and installation services; designs environmental protection projects; and sells related equipment. It also collects and treats municipal wastes by mechanical and biological technology; and manufactures environmental protection equipment. The company was formerly known as China Everbright International Limited and changed its name to China Everbright Environment Group Limited in September 2020. China Everbright Environment Group Limited was incorporated in 1961 and is headquartered in Hong Kong, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Everbright Environment Group reported revenue of HK$27.5B in FY2025 versus HK$49.9B in FY2021, a compound −13.8%/yr. Reported net income was HK$4.1B in FY2025, compounding −11.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$27.5B
Latest YoY
−9.0%
Avg. growth/yr (3Y) 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.
−9.7%
Avg. growth/yr (5Y) 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.
−8.5%
Avg. growth/yr (25Y) 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.
+17.7%
Revenue −13.8%/yr
FY21 HK$49.9B
FY22 HK$37.3B
FY23 HK$32.1B
FY24 HK$30.3B
FY25 HK$27.5B
Net income −11.9%/yr
FY21 HK$6.8B
FY22 HK$4.6B
FY23 HK$4.4B
FY24 HK$3.4B
FY25 HK$4.1B
Character of growth · EPS growth decomposed (2014-2025) +13.6 % p.a.
Revenue per share +20.7 pp

of which total revenue +13.5 pp · buybacks/dilution +7.2 pp

EBIT margin −2.6 pp
Tax rate +0.5 pp
Residual (interest, one-offs) −4.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Everbright Environment Group Fair Value". https://www.fairvalue-calculator.com/stock/0257

Peer Group

Waste Management · 166 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 62 · Top 25%
Fair Value upside +89% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 3% · Above median
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 29% · Top 25%
Revenue growth -10% · Bottom 25%
Dividend yield (TTM) 5.7% · Top 25%
Debt / equity 1.12× · Higher than 75% of peers

Valuation Multiples vs Waste Management median · lower = cheaper

P/E (TTM) 7.1× · Cheaper than 75% of peers
P/B 0.54× · Cheaper than median
P/S (TTM) 1.02× · Cheaper than median
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 7.0× · Cheaper than median

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 100 · sector 8
FUTURE 0 · sector 22
PAST 26 · sector 25
HEALTH 44 · sector 81
DIVIDEND 100 · sector 30

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 Waste Management stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Waste Management, Inc WM $233.33 $128.02 -45%
Republic Services, Inc RSG $219.20 $122.01 -44%
Waste Connections, Inc WCN C$242.43 C$78.67 -68%
Veolia Environnement SA VIE €37.51 €24.50 -35%
Clean Harbors, Inc CLH $303.64 $155.37 -49%
GFL Environmental Inc GFL C$55.40 C$94.12 +70%
Fomento de Construcciones y Contratas, S.A FCC €12.20 €7.30 -40%
GEM Co 002340 ¥6.32 ¥5.27 -17%
Zhejiang Weiming Environment Protection Co 603568 ¥16.18 ¥20.91 +29%
Cleanaway Waste Management Limited CWY A$2.34 A$1.18 -50%

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Frequently asked questions

Is China Everbright Environment Group (0257) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$9.36 versus a price of HK$4.96, about +89% (undervalued).
What is the fair value of 0257?
Our model-based fair value for China Everbright Environment Group is HK$9.36 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$4.96.
What is the quality score of 0257?
China Everbright Environment Group has a Quality Score of 62/100. 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 revenue of China Everbright Environment Group (0257)?
China Everbright Environment Group reported trailing-twelve-month revenue of about HK$27.5B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0257?
The net profit margin of China Everbright Environment Group is about 14.3%, meaning it keeps roughly 14.3% of revenue as net income. Based on the latest reported figures.
Does China Everbright Environment Group pay a dividend?
China Everbright Environment Group currently shows a dividend yield of about 5.74% relative to its recent price (as of Aug 2, 2026).

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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