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Shanghai Shentong Metro Co (600834) Fair Value & Analysis

Industrials · CN · Market cap 3.5B CNY

SS Shanghai Shentong Metro Co 600834 · SHG
Price¥7.29
Fair Value¥2.39
Upside-67.2%
Quality58/100
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Expensive Growth
Thin margins · 8.1% net margin
Low debt · generates free cash flow
0.54% dividend yield
Trails peers (5/14)
Narrow moat 32/100
Evidence: Medium Range ¥1.79 – ¥2.98 Share as image

Fair value as of: Aug 9, 2026

From 25 valuation models · updated yesterday

Share price +8.5% over the past month.

A solid business, but screening 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.98). The favourable scenario is already priced in.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥13.11 ¥6.16 Fair Value ¥2.39 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.

How to read this chart

60‑month range ¥6.16 – ¥13.11 · fair‑value band ¥1.79 – ¥2.98 · the ¥7.29 price screens above the ¥2.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Shanghai Shentong Metro Co (600834) currently trades at ¥7.29, while our model-based Fair Value estimate is ¥2.39, implying the stock looks roughly 67.2% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Industrials 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: medium).

Over the trailing twelve months, Shanghai Shentong Metro Co generated revenue of 604M CNY at a net margin of 8.1%. Revenue grew 6.3% year over year. It earns a return on equity of 3.3%. The balance sheet holds a net cash position of 223M CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥1.79 (bear case) to ¥2.98 (bull case); at ¥7.29, the current price sits above 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 23% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at -67%, 600834 screens richer 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 ¥8.83 ¥12.48 ¥17.41 80
Residual Income ¥2.61 ¥2.53 ¥2.12 76
Rev-Margin DCF ¥3.95 ¥4.83 ¥5.77 74
All 25 models by family
DCF Models
FCF DCF ¥8.68 ¥12.76 ¥18.59 38
5Y Revenue Exit ¥4.06 ¥5.01 ¥6.06 39
5Y EBITDA Exit ¥4.46 ¥5.73 ¥7.10 41
5Y P/E Exit ¥4.33 ¥5.50 ¥6.63 38
10Y Revenue Exit ¥5.70 ¥6.93 ¥8.31 36
10Y EBITDA Exit ¥5.98 ¥7.42 ¥9.08 37
10Y P/E Exit ¥5.90 ¥7.26 ¥8.73 35
Earnings-Based
Graham-Dodd ¥0.7700 ¥2.19 ¥2.88 54
Lynch FV ¥0.4500 ¥0.6400 ¥0.8300 50
PEG = 1.0 ¥0.4500 ¥0.6400 ¥0.8300 46
EPV ¥1.02 ¥1.15 ¥1.26 59
Dividend Discount
Gordon GGM ¥0.4100 ¥0.8100 ¥1.23 70
DDM Multi-Stage ¥0.4100 ¥0.6400 ¥0.8600 61
Multiples
P/E Multiple ¥1.79 ¥2.39 ¥2.98 63
P/S Multiple ¥1.45 ¥1.93 ¥2.41 58
P/B Multiple ¥1.45 ¥1.93 ¥2.41 55
EV/EBIT ¥1.94 ¥2.51 ¥3.08 53
EV/EBITDA ¥2.25 ¥2.92 ¥3.59 54
EV/Revenue ¥1.45 ¥1.97 ¥2.50 43
Asset-Based
NCAV (Graham) ¥1.82 ¥2.44 ¥3.64 50
Growth DCF
Growth DCF ¥8.83 ¥12.48 ¥17.41 80
Rev-Margin DCF ¥3.95 ¥4.83 ¥5.77 74
Economic Profit
Residual Income ¥2.61 ¥2.53 ¥2.12 76
ROIC Compounder ¥1.02 ¥1.15 ¥1.26 72
Growth Earnings
Growth-Adj P/E ¥1.43 ¥2.05 ¥2.66 68

Widest divergence: DCF Models (¥6.93) versus Earnings-Based (¥0.6400). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 604M CNY
Revenue growth (YoY) +6.3%
Net margin 8.1%
Return on equity 3.3%
Free cash flow 382M CNY FY2025
P/E ratio 72.9
More key figures
Operating margin 6.0%
EPS (TTM) ¥0.1000
Dividend yield 0.5%
EPS growth (YoY) -55.4%
Net cash 223M CNY FY2024

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 60 · Market factors (momentum, volatility) 40

Profitability 24
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 19
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

Shanghai Shentong Metro Co.,Ltd. engages in the public transportation operation and maintenance management business in China. It operates through Financial Leasing and Commercial Factoring; Photovoltaic and Energy Conservation; Public Transportation Operation and Management; and Comprehensive Property Services segments.

Full company description

Shanghai Shentong Metro Co.,Ltd. engages in the public transportation operation and maintenance management business in China. It operates through Financial Leasing and Commercial Factoring; Photovoltaic and Energy Conservation; Public Transportation Operation and Management; and Comprehensive Property Services segments. The company offers operation and maintenance management services for driverless subways, airport rapid transit systems, and trams; and property services. It also engages in investments in distributed photovoltaic and charging pile projects; energy-saving renovation projects; station property and train environment management; integrated production management of station facilities and equipment; rail transit investment; enterprise management and business consulting; financial leasing, sale, and leaseback; and commercial factoring activities. The company was formerly known as Shanghai Lingqiao Water Supply Co., Ltd. The company was founded in 1992 and is headquartered in Shanghai, China. Shanghai Shentong Metro Co.,Ltd. operates as a subsidiary of Shanghai Shentong Metro Group Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Shentong Metro Co reported revenue of ¥596M in FY2025 versus ¥348M in FY2021, a compound +14.4%/yr. Reported net income was ¥54.2M in FY2025, compounding −7.0%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
596M CNY
Latest YoY
+1.8%
Avg. growth/yr (3Y)
+20.2%
Avg. growth/yr (5Y)
+14.6%
Avg. growth/yr (33Y)
+24.0%
Revenue +14.4%/yr
FY21 ¥348M
FY22 ¥343M
FY23 ¥626M
FY24 ¥586M
FY25 ¥596M
Net income −7.0%/yr
FY21 ¥72.4M
FY22 ¥73.0M
FY23 ¥72.5M
FY24 ¥51.8M
FY25 ¥54.2M

600834 screens 67% overvalued. Compare with Union Pacific Corporation →

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Cite: Fair Value Calculator (2026). "Shanghai Shentong Metro Co Fair Value". https://www.fairvalue-calculator.com/stock/600834

Peer Group

Railroads · 111 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 58 · Above median
Fair Value upside −67% · Bottom 25%
Return on equity (TTM) 3% · Bottom 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 6% · Below median
Revenue growth 6% · Above median
Dividend yield (TTM) 0.5% · Bottom 25%
Debt / equity 0.03× · Lower than 75% of peers

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 72.9× · Pricier than 75% of peers
P/B 2.00× · Pricier than median
P/S (TTM) 5.76× · Pricier than 75% of peers
P/FCF 1.4× · Cheaper than median
EV/EBITDA 41.7× · Pricier 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 0 · sector 28
FUTURE 32 · sector 20
PAST 13 · sector 31
HEALTH 99 · sector 88
DIVIDEND 11 · sector 41

VALUE 0: the price sits above our fair-value range.

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 Railroads stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is Shanghai Shentong Metro Co (600834) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥2.39 versus a price of ¥7.29, about −67% (overvalued).
What is the fair value of 600834?
Our model-based fair value for Shanghai Shentong Metro Co is ¥2.39 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥7.29.
What is the quality score of 600834?
Shanghai Shentong Metro Co has a Quality Score of 58/100. 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 Shanghai Shentong Metro Co (600834)?
Shanghai Shentong Metro Co reported trailing-twelve-month revenue of about 604M CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600834?
The net profit margin of Shanghai Shentong Metro Co is about 8.1%, meaning it keeps roughly 8.1% of revenue as net income. Based on the latest reported figures.
Does Shanghai Shentong Metro Co pay a dividend?
Shanghai Shentong Metro Co currently shows a dividend yield of about 0.55% relative to its recent price (as of Aug 9, 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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