EN DE

Shanghai Electric Group (601727) Fair Value & Analysis

Industrials · CN · Market cap 104B CNY

SE Shanghai Electric Group 601727 · SHG
Price¥6.88
Fair Value¥1.79
Upside-74.0%
Quality45/100
Watch Shanghai Electric Group for free, get notified when fair value or trend changes. Watch for free
Weak Growth
Thin margins · 1.0% net margin
Moderate debt · generates free cash flow
Trails peers (5/14)
Narrow moat 28/100
Evidence: Medium Range ¥1.22 – ¥2.10 Share as image

Fair value as of: Jul 13, 2026

From 24 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from ¥1.59 to ¥1.79 (+12.6%) since Jul 5, 2026. Share price +1.8% over the past month.

Below-average quality, and screening another 74% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥2.10). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

¥12.30 ¥3.48 Fair Value ¥1.79 Feb 2021 Aug 2026

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

How to read this chart

60‑month range ¥3.48 – ¥12.30 · fair‑value band ¥1.22 – ¥2.10 · the ¥6.88 price screens above the ¥1.79 fair value. Dashed = 300-day average. As of Jul 13, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Shanghai Electric Group (601727) currently trades at ¥6.88, while our model-based Fair Value estimate is ¥1.79, implying the stock looks roughly 74.0% overvalued today. We read business quality at 45/100 (below-average 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 Electric Group generated revenue of 129B CNY at a net margin of 1.0%. Revenue grew 9.3% year over year. It earns a return on equity of 3.9%. Net debt stands at 1.6B CNY. Fundamentals as of Jul 13, 2026

Our scenario range runs from ¥1.22 (bear case) to ¥2.10 (bull case); at ¥6.88, 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 39% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -74%, 601727 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 ¥4.46 ¥6.08 ¥8.30 80
Residual Income ¥2.51 ¥2.43 ¥1.97 76
Rev-Margin DCF ¥3.88 ¥5.59 ¥7.46 74
All 24 models by family
DCF Models
FCF DCF ¥4.35 ¥6.11 ¥8.63 38
5Y Revenue Exit ¥3.88 ¥5.55 ¥7.61 39
5Y EBITDA Exit ¥5.02 ¥7.60 ¥10.50 41
5Y P/E Exit ¥2.57 ¥3.22 ¥3.84 38
10Y Revenue Exit ¥3.93 ¥5.46 ¥7.37 36
10Y EBITDA Exit ¥4.74 ¥6.85 ¥9.48 37
10Y P/E Exit ¥3.20 ¥3.88 ¥4.60 35
Earnings-Based
Graham-Dodd ¥0.5300 ¥1.30 ¥1.68 54
PEG = 1.0 ¥0.2300 ¥0.3300 ¥0.4300 46
EPV ¥3.31 ¥3.77 ¥4.18 59
Dividend Discount
Gordon GGM ¥0.8500 ¥1.56 ¥2.51 70
DDM Multi-Stage ¥0.8500 ¥1.28 ¥1.75 61
Multiples
P/E Multiple ¥1.16 ¥1.55 ¥1.94 63
P/S Multiple ¥0.9900 ¥1.32 ¥1.65 58
P/B Multiple ¥0.9900 ¥1.32 ¥1.65 55
EV/EBIT ¥5.38 ¥6.99 ¥8.60 53
EV/EBITDA ¥6.07 ¥7.91 ¥9.75 54
EV/Revenue ¥3.80 ¥5.20 ¥6.59 43
Asset-Based
NCAV (Graham) ¥1.76 ¥2.36 ¥3.52 50
Growth DCF
Growth DCF ¥4.46 ¥6.08 ¥8.30 80
Rev-Margin DCF ¥3.88 ¥5.59 ¥7.46 74
Economic Profit
Residual Income ¥2.51 ¥2.43 ¥1.97 76
ROIC Compounder ¥3.31 ¥3.88 ¥4.60 72
Growth Earnings
Growth-Adj P/E ¥0.9000 ¥1.28 ¥1.66 68

Widest divergence: Growth DCF (¥5.59) versus Dividend Discount (¥1.28). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 129B CNY
Revenue growth (YoY) +9.3%
Net margin 1.0%
Return on equity 3.9%
Free cash flow 5.5B CNY FY2025
P/E ratio 98.0
More key figures
Operating margin 3.2%
EPS (TTM) ¥0.0800
EPS growth (YoY) +30.3%
Net debt 1.6B CNY FY2025

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

Quality Score breakdown

Overall quality 45/100

Of which business quality 49 · Market factors (momentum, volatility) 34

Profitability 18
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 28
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 87
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 Electric Group Co., Ltd. manufactures and sells industrial and energy equipment in Mainland China and internationally. The company operates through Energy Equipment Business, Industrial Equipment Business, and Integrated Service Business segments.

Full company description

Shanghai Electric Group Co., Ltd. manufactures and sells industrial and energy equipment in Mainland China and internationally. The company operates through Energy Equipment Business, Industrial Equipment Business, and Integrated Service Business segments. It offers designs, manufactures, and sells nuclear power, energy storage, coal-fired power generation and auxiliary, gas power generation, wind power, hydrogen, photovoltaic, and high-end chemical equipment, as well as elevators, large and medium-sized electric motors, intelligent manufacturing equipment, industrial basic parts, and construction industrialization equipment. The company also provides power grid and industrial intelligent power supply system solutions; energy, environmental protection and automation engineering and services, such as traditional and new energy, comprehensive utilization of solid waste, sewage treatment, flue gas treatment, and rail transit; industrial internet services; financial services, including financial leasing, factoring, asset management, and insurance brokerage; and park and property management services. The company was founded in 1902 and is headquartered in Shanghai, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Electric Group reported revenue of ¥127B in FY2025 versus ¥130B in FY2021, a compound −0.7%/yr. Reported net income was ¥1.2B in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
127B CNY
Latest YoY
+9.0%
Avg. growth/yr (3Y)
+2.5%
Avg. growth/yr (5Y)
−1.6%
Avg. growth/yr (20Y)
+6.4%
Revenue −0.7%/yr
FY21 ¥130B
FY22 ¥118B
FY23 ¥115B
FY24 ¥116B
FY25 ¥127B
Net income
FY21 −¥10.0B
FY22 −¥3.6B
FY23 ¥803M
FY24 ¥752M
FY25 ¥1.2B

601727 screens 74% overvalued. Compare with GE Vernova Inc →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Shanghai Electric Group Fair Value". https://www.fairvalue-calculator.com/stock/601727

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 808 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 45 · Below median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Bottom 25%
Operating margin (TTM) 3% · Below median
Revenue growth 9% · Above median
Debt / equity 0.53× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 83.4× · Pricier than 75% of peers
P/B 1.90× · Cheaper than median
P/S (TTM) 0.81× · Cheaper than median
P/FCF 2.8× · Cheaper than median
EV/EBITDA 15.3× · Cheaper than median
PEG 8.12× · 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 0
FUTURE 47 · sector 23
PAST 16 · sector 28
HEALTH 74 · sector 96
DIVIDEND 0 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

Compare Shanghai Electric Group with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Shanghai Electric Group (601727) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ¥1.79 versus a price of ¥6.88, about −74% (overvalued).
What is the fair value of 601727?
Our model-based fair value for Shanghai Electric Group is ¥1.79 (as of Jul 13, 2026), built from audited fundamentals. The current price is ¥6.88.
What is the quality score of 601727?
Shanghai Electric Group has a Quality Score of 45/100. 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 Shanghai Electric Group (601727)?
Shanghai Electric Group reported trailing-twelve-month revenue of about 129B CNY (latest available figure, as of Jul 13, 2026).
What is the net profit margin of 601727?
The net profit margin of Shanghai Electric Group is about 1.0%, meaning it keeps roughly 1.0% 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.

14 days Pro free · no card

Track Shanghai Electric Group and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.