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China Everbright Water Limited (1857) Fair Value & Analysis

Utilities · HK · Market cap HK$3.7B

CE China Everbright Water Limited 1857 · HK
PriceHK$1.35
Fair ValueHK$3.50
Upside+159.3%
Quality56/100
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Healthy Growth
Solidly profitable · 15.7% net margin
Moderate debt · generates free cash flow
7.86% dividend yield
Ranks above peers (11/14)
Moderate moat 61/100
Evidence: Medium Range HK$3.50 – HK$5.49 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated today

Fair value updated Aug 13, 2026, revised from HK$4.24 to HK$3.50 (−17.5%) since Aug 5, 2026. Share price +1.5% over the past month.

A solid business, screening 159% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$3.50). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$1.65 HK$0.8568 Fair Value HK$3.50 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.8568 – HK$1.65 · fair‑value band HK$3.50 – HK$5.49 · the HK$1.35 price screens below the HK$3.50 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Everbright Water Limited (1857) currently trades at HK$1.35, while our model-based Fair Value estimate is HK$3.50, implying the stock looks roughly 159.3% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Utilities 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 Water Limited generated revenue of HK$5.4B at a net margin of 15.7%. Revenue declined 40.7% year over year. It earns a return on equity of 6.2%. Net debt stands at HK$15.8B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$3.50 (bear case) to HK$5.49 (bull case); at HK$1.35, 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 share trades about 19% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at 12% fair-value upside, at 159%, 1857 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$2.18 HK$5.99 80
Residual Income HK$3.56 HK$3.70 HK$3.83 76
Rev-Margin DCF HK$0.1800 HK$2.83 HK$6.39 74
All 26 models by family
DCF Models
FCF DCF HK$2.57 HK$7.18 38
Owner Earnings HK$1.82 HK$6.06 HK$13.56 31
5Y Revenue Exit HK$0.1800 HK$2.93 HK$6.79 39
5Y EBITDA Exit HK$1.15 HK$5.00 HK$10.01 41
5Y P/E Exit HK$0.5300 HK$3.67 HK$7.39 38
10Y Revenue Exit HK$2.56 HK$6.78 36
10Y EBITDA Exit HK$0.7200 HK$4.07 HK$9.52 37
10Y P/E Exit HK$0.3100 HK$3.10 HK$7.29 35
Earnings-Based
Graham-Dodd HK$2.04 HK$10.79 HK$14.94 54
Lynch FV HK$2.97 HK$4.24 HK$5.51 50
PEG = 1.0 HK$2.97 HK$4.24 HK$5.51 46
EPV HK$1.42 HK$2.11 HK$2.71 59
Dividend Discount
Gordon GGM HK$1.06 HK$2.12 HK$3.21 70
DDM Multi-Stage HK$1.06 HK$1.83 HK$2.24 61
Multiples
P/E Multiple HK$4.05 HK$5.40 HK$6.75 63
P/S Multiple HK$3.51 HK$4.68 HK$5.85 58
P/B Multiple HK$3.82 HK$5.10 HK$6.37 55
EV/EBIT HK$3.61 HK$5.82 HK$8.02 53
EV/EBITDA HK$2.04 HK$3.72 HK$5.39 54
EV/Revenue HK$0.2900 HK$1.69 HK$3.10 43
Asset-Based
NCAV (Graham) HK$2.24 HK$3.00 HK$4.48 50
Growth DCF
Growth DCF HK$2.18 HK$5.99 80
Rev-Margin DCF HK$0.1800 HK$2.83 HK$6.39 74
Economic Profit
Residual Income HK$3.56 HK$3.70 HK$3.83 76
ROIC Compounder HK$1.42 HK$2.11 HK$2.71 72
Growth Earnings
Growth-Adj P/E HK$4.08 HK$5.82 HK$7.57 68

Widest divergence: Growth Earnings (HK$5.82) versus Dividend Discount (HK$1.83). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$5.4B
Revenue growth (YoY) -40.7%
Net margin 15.7%
Return on equity 6.2%
Free cash flow HK$654M FY2025
P/E ratio 4.5 as of Jul 2, 2026
More key figures
Operating margin 35.8%
EPS (TTM) HK$0.2000
Dividend yield 7.9%
EPS growth (YoY) -36.4%
Net debt HK$15.8B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 50 · Market factors (momentum, volatility) 48

Profitability 29
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 23
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 24
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 Water Limited engages in the water environment management business in Mainland China and Germany. It is involved in municipal wastewater treatment, industrial wastewater treatment, water supply, reusable water, sludge treatment and disposal, sponge city construction, river-basin ecological restoration, livestock and poultry manure resources …

Full company description

China Everbright Water Limited engages in the water environment management business in Mainland China and Germany. It is involved in municipal wastewater treatment, industrial wastewater treatment, water supply, reusable water, sludge treatment and disposal, sponge city construction, river-basin ecological restoration, livestock and poultry manure resources utilization, and research and development of water environmental technologies and engineering construction. The company was incorporated in 2003 and is based in Shenzhen, the People's Republic of China. China Everbright Water Limited operates as a subsidiary of China Everbright Environment Group Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Everbright Water Limited reported revenue of HK$5.4B in FY2025 versus HK$6.9B in FY2021, a compound −6.2%/yr. Reported net income was HK$858M in FY2025, compounding −8.0%/yr from FY2021.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$5.4B
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.
−0.3%
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.
+4.3%
Avg. growth/yr (20Y) 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.
+9.2%
Revenue −6.2%/yr
FY21 HK$6.9B
FY22 HK$6.7B
FY23 HK$6.7B
FY24 HK$6.9B
FY25 HK$5.4B
Net income −8.0%/yr
FY21 HK$1.2B
FY22 HK$1.0B
FY23 HK$1.2B
FY24 HK$1.0B
FY25 HK$858M
Character of growth · EPS growth decomposed (2014-2025) +10.4 % p.a.
Revenue per share +12.7 pp

of which total revenue +15.0 pp · buybacks/dilution −2.3 pp

EBIT margin −2.0 pp
Tax rate +0.8 pp
Residual (interest, one-offs) −1.2 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 Water Limited Fair Value". https://www.fairvalue-calculator.com/stock/1857

Peer Group

Utilities - Regulated Water · 68 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 56 · Top 25%
Fair Value upside +159% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 3% · Above median
Net margin (TTM) 16% · Above median
Operating margin (TTM) 36% · Top 25%
Revenue growth -41% · Bottom 25%
Dividend yield (TTM) 7.9% · Top 25%
Debt / equity 0.85× · Higher than median

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 4.5× · Cheaper than 75% of peers
P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.70× · Cheaper than 75% of peers
P/FCF 0.7× · Cheaper than median
EV/EBITDA 6.0× · 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 100 · sector 10
FUTURE 0 · sector 27
PAST 25 · sector 29
HEALTH 58 · sector 65
DIVIDEND 100 · sector 49

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 Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.92 $65.80 -51%
SBSP3 SBSP3 R$26.12 R$31.23 +20%
SBS SBS $5.10 $8.12 +59%
Essential Utilities, Inc WTRG $40.08 $21.81 -46%
Guangdong Investment Limited 0270 HK$8.15 HK$12.82 +57%
CSMG3 CSMG3 R$60.57 R$60.17 -1%
Grandblue Environment Co 600323 ¥29.61 ¥33.29 +12%
American States Water Company AWR $87.54 $47.94 -45%
Chengdu Xingrong Environment Co 000598 ¥7.14 ¥9.09 +27%
California Water Service Group CWT $49.98 $33.56 -33%

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Frequently asked questions

Is China Everbright Water Limited (1857) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$3.50 versus a price of HK$1.35, about +159% (undervalued).
What is the fair value of 1857?
Our model-based fair value for China Everbright Water Limited is HK$3.50 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$1.35.
What is the quality score of 1857?
China Everbright Water Limited has a Quality Score of 56/100. 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 Water Limited (1857)?
China Everbright Water Limited reported trailing-twelve-month revenue of about HK$5.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1857?
The net profit margin of China Everbright Water Limited is about 15.7%, meaning it keeps roughly 15.7% of revenue as net income. Based on the latest reported figures.
Does China Everbright Water Limited pay a dividend?
China Everbright Water Limited currently shows a dividend yield of about 7.86% relative to its recent price (as of Aug 13, 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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