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Gaush Meditech Ltd (2407) Fair Value & Analysis

Healthcare · HK · Market cap HK$736M

GM Gaush Meditech Ltd 2407 · HK
PriceHK$4.62
Fair ValueHK$13.78
Upside+198.3%
Quality50/100
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Mixed Growth
Thin margins · 7.0% net margin
Low debt · generates free cash flow
Ranks above peers (12/14)
Narrow moat 32/100
Evidence: High Range HK$9.90 – HK$17.96 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 4 days ago

Fair value updated Aug 13, 2026, revised from HK$13.77 to HK$13.78 (+0.1%) since Aug 5, 2026. Share price −5.7% over the past month.

A solid business, screening 198% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$9.90). The market is more pessimistic than our downside scenario.
  • Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$9.90 to HK$17.96) leaves room in how you read the outcome.
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Price vs Fair Value (4 years)

HK$48.87 HK$4.57 Fair Value HK$13.78 Dec 2022 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

44‑month range HK$4.57 – HK$48.87 · fair‑value band HK$9.90 – HK$17.96 · the HK$4.62 price screens below the HK$13.78 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Gaush Meditech Ltd (2407) currently trades at HK$4.62, while our model-based Fair Value estimate is HK$13.78, implying the stock looks roughly 198.3% undervalued today. The Quality Score stands at 50/100 (solid quality), in the Healthcare 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: high), always confirm before acting.

Over the trailing twelve months, Gaush Meditech Ltd generated revenue of HK$1.4B at a net margin of 7.0%. Revenue declined 7.5% year over year. It earns a return on equity of 5.6%. Net debt stands at HK$66.4M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$9.90 (bear case) to HK$17.96 (bull case); at HK$4.62, 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 54% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -33% fair-value upside, at 198%, 2407 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$7.46 HK$9.34 HK$11.56 80
Residual Income HK$8.51 HK$8.67 HK$8.19 76
Rev-Margin DCF HK$7.61 HK$10.91 HK$14.38 74
All 24 models by family
DCF Models
FCF DCF HK$7.32 HK$9.35 HK$11.84 38
Owner Earnings HK$9.83 HK$12.65 HK$16.10 31
5Y Revenue Exit HK$7.61 HK$10.80 HK$14.71 39
5Y EBITDA Exit HK$11.16 HK$17.00 HK$23.48 41
5Y P/E Exit HK$8.97 HK$13.18 HK$17.32 38
10Y Revenue Exit HK$7.25 HK$9.88 HK$13.01 36
10Y EBITDA Exit HK$9.44 HK$13.67 HK$18.73 37
10Y P/E Exit HK$8.20 HK$11.33 HK$14.71 35
Earnings-Based
Graham-Dodd HK$4.42 HK$9.16 HK$11.57 54
EPV HK$6.16 HK$6.88 HK$7.49 59
Dividend Discount
Gordon GGM HK$7.80 HK$10.83 HK$13.61 70
DDM Multi-Stage HK$7.80 HK$10.49 HK$13.18 61
Multiples
P/E Multiple HK$10.73 HK$14.31 HK$17.89 63
P/S Multiple HK$8.29 HK$11.06 HK$13.82 58
P/B Multiple HK$8.29 HK$11.06 HK$13.82 55
EV/EBIT HK$11.34 HK$14.83 HK$18.33 53
EV/EBITDA HK$15.94 HK$20.97 HK$26.00 54
EV/Revenue HK$8.34 HK$11.54 HK$14.75 43
Asset-Based
NCAV (Graham) HK$5.71 HK$7.65 HK$11.42 50
Growth DCF
Growth DCF HK$7.46 HK$9.34 HK$11.56 80
Rev-Margin DCF HK$7.61 HK$10.91 HK$14.38 74
Economic Profit
Residual Income HK$8.51 HK$8.67 HK$8.19 76
ROIC Compounder HK$6.16 HK$6.88 HK$7.49 72
Growth Earnings
Growth-Adj P/E HK$7.83 HK$11.18 HK$14.54 68

Widest divergence: Multiples (HK$11.54) versus Earnings-Based (HK$6.88). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$1.4B
Revenue growth (YoY) -7.5%
Net margin 7.0%
Return on equity 5.6%
Free cash flow HK$110M FY2025
P/E ratio 6.6 as of Jul 2, 2026
More key figures
Operating margin 6.5%
EPS (TTM) HK$0.2600
EPS growth (YoY) -6.8%
Net debt HK$66.4M FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 50 · Market factors (momentum, volatility) 25

Profitability 36
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 49
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

Gaush Meditech Ltd. engages in research and development, production, and distribution of ophthalmic medical equipment and consumables, and the provision of technical services to end customers.

Full company description

Gaush Meditech Ltd. engages in research and development, production, and distribution of ophthalmic medical equipment and consumables, and the provision of technical services to end customers. The company's product portfolio comprising proprietary products, which it develops and manufactures, as well as distribution products of its brand partners, which it distributes, covering seven ophthalmology sub-specialties where ophthalmic medical devices are utilized for diagnosis, treatment, or surgeries, being vitreoretinal diseases, cataracts, refractive surgery, glaucoma, ocular surface diseases, optometry, and pediatric ophthalmology. The company was founded in 1998 and is headquartered in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Gaush Meditech Ltd reported revenue of HK$1.4B in FY2025 versus HK$1.3B in FY2021, a compound +1.5%/yr. Reported net income was HK$96.2M in FY2025.

Growth Quality 69/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$1.4B
Latest YoY
−3.4%
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.
+3.3%
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.
+7.5%
Avg. growth/yr (6Y) 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.
+3.8%
Revenue +1.5%/yr
FY21 HK$1.3B
FY22 HK$1.3B
FY23 HK$1.4B
FY24 HK$1.4B
FY25 HK$1.4B
Net income
FY21 −HK$190M
FY22 −HK$350M
FY23 HK$174M
FY24 HK$92.4M
FY25 HK$96.2M

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Cite: Fair Value Calculator (2026). "Gaush Meditech Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2407

Peer Group

Medical Devices · 353 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 50 · Above median
Fair Value upside +198% · Top 25%
Return on equity (TTM) 6% · Above median
Return on assets 3% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth -8% · Bottom 25%
Dividend yield (TTM) 20.2% · Top 25%
Debt / equity 0.19× · Higher than median

Valuation Multiples vs Medical Devices median · lower = cheaper

P/E (TTM) 6.6× · Cheaper than 75% of peers
P/B 0.44× · Cheaper than 75% of peers
P/S (TTM) 0.53× · Cheaper than 75% of peers
P/FCF 0.9× · Cheaper than 75% of peers
EV/EBITDA 3.4× · 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 0
FUTURE 0 · sector 30
PAST 22 · sector 6
HEALTH 91 · sector 97
DIVIDEND 100 · sector 38

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 Medical Devices stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Abbott Laboratories, ABT $110.91 $74.79 -33%
Stryker Corporation SYK $347.21 $186.28 -46%
Medtronic plc MDT $90.76 $65.57 -28%
Boston Scientific Corporation BSX $51.42 $38.44 -25%
Edwards Lifesciences Corporation EW $93.05 $41.02 -56%
Shenzhen Mindray Bio-Medical Electronics Co 300760 ¥153.60 ¥147.63 -4%
Shanghai United Imaging Healthcare Co 688271 ¥110.50 ¥43.60 -61%
Demant A/S DEMANT kr 289.60 kr 161.17 -44%
Getinge AB GETIB kr 239.30 kr 192.14 -20%
Sectra AB SECTB kr 280.00 kr 66.81 -76%

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Frequently asked questions

Is Gaush Meditech Ltd (2407) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$13.78 versus a price of HK$4.62, about +198% (undervalued).
What is the fair value of 2407?
Our model-based fair value for Gaush Meditech Ltd is HK$13.78 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$4.62.
What is the quality score of 2407?
Gaush Meditech Ltd has a Quality Score of 50/100. 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 Gaush Meditech Ltd (2407)?
Gaush Meditech Ltd reported trailing-twelve-month revenue of about HK$1.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2407?
The net profit margin of Gaush Meditech Ltd is about 7.0%, meaning it keeps roughly 7.0% 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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