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Shareate Tools Ltd (688257) Fair Value & Analysis

Industrials · CN · Market cap 28.5B CNY

ST Shareate Tools Ltd 688257 · SHG
Price¥63.00
Fair Value¥14.01
Upside-77.8%
Quality48/100
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Expensive Growth
Solidly profitable · 16.0% net margin
Low debt · negative free cash flow
0.27% dividend yield
Mixed vs. peers (6/13)
Wide moat 72/100
Evidence: Medium Range ¥7.43 – ¥17.53 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ¥14.02 to ¥14.01 (−0.1%) since Jun 24, 2026. Share price −23.2% over the past month.

Below-average quality, and screening another 78% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥17.53). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥7.43 to ¥17.53) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥111.80 ¥6.25 Fair Value ¥14.01 Oct 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

57‑month range ¥6.25 – ¥111.80 · fair‑value band ¥7.43 – ¥17.53 · the ¥63.00 price screens above the ¥14.01 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Shareate Tools Ltd (688257) currently trades at ¥63.00, while our model-based Fair Value estimate is ¥14.01, implying the stock looks roughly 77.8% overvalued today. The Quality Score stands at 48/100 (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, Shareate Tools Ltd generated revenue of 3.1B CNY at a net margin of 16.0%. Revenue grew 111.6% year over year. It earns a return on equity of 19.5%. Net debt stands at 353M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥7.43 (bear case) to ¥17.53 (bull case); at ¥63.00, 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 35% below its 52-week high, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -26% fair-value upside, at -78%, 688257 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
Residual Income ¥5.86 ¥6.52 ¥10.48 76
ROIC Compounder ¥8.76 ¥11.92 ¥14.61 72
Gordon GGM ¥2.20 ¥4.57 ¥7.25 70
All 17 models by family
DCF Models
Owner Earnings ¥9.74 ¥20.47 ¥42.97 31
Earnings-Based
Graham-Dodd ¥4.54 ¥31.66 ¥44.43 54
Lynch FV ¥10.89 ¥15.56 ¥20.23 50
PEG = 1.0 ¥10.89 ¥15.56 ¥20.23 46
EPV ¥7.72 ¥8.79 ¥9.72 59
Dividend Discount
Gordon GGM ¥2.20 ¥4.57 ¥7.25 70
DDM Multi-Stage ¥2.20 ¥3.85 ¥4.80 61
Multiples
P/E Multiple ¥10.52 ¥14.02 ¥17.53 63
P/S Multiple ¥8.51 ¥11.35 ¥14.19 58
P/B Multiple ¥8.51 ¥11.35 ¥14.19 55
EV/EBIT ¥12.59 ¥16.34 ¥20.10 53
EV/EBITDA ¥13.33 ¥17.33 ¥21.33 54
EV/Revenue ¥9.37 ¥12.81 ¥16.26 43
Asset-Based
NCAV (Graham) ¥3.33 ¥4.46 ¥6.66 50
Economic Profit
Residual Income ¥5.86 ¥6.52 ¥10.48 76
ROIC Compounder ¥8.76 ¥11.92 ¥14.61 72
Growth Earnings
Growth-Adj P/E ¥14.25 ¥20.36 ¥26.47 68

Widest divergence: DCF Models (¥20.47) versus Dividend Discount (¥3.85). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 3.1B CNY
Revenue growth (YoY) +112%
Net margin 16.0%
Return on equity 19.5%
Free cash flow −15.2M CNY FY2025
P/E ratio 57.4
More key figures
Operating margin 35.6%
EPS (TTM) ¥1.40
Dividend yield 0.3%
EPS growth (YoY) +576%
Net debt 353M CNY FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 45 · Market factors (momentum, volatility) 67

Profitability 51
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 14
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 22
Calm price path (market factor)
Momentum 88
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 0
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

Shareate Tools Ltd. engages in the research, development, production, and sales of cemented carbide and drilling tools in China and internationally.

Full company description

Shareate Tools Ltd. engages in the research, development, production, and sales of cemented carbide and drilling tools in China and internationally. The company offers mining tri-cone drill bit and water well bits; DTH hammer and bit; horizontal directional drilling products comprises reamers and single roller cone bit; core barrel roller bit; raise bore tools; and top hammer drilling tools. It also provides mining tungsten carbide products, including tungsten carbide button, carbide substrate, shield machine tool, coal cutter pick, and tungsten carbide tubular electrode; precision components; cutting tools such as carbide rod and inserts, and round tools; tungsten carbide die products comprising carbide plates, cold headings, hobs, and powder metallurgy dies; and cermet products. The company was formerly known as Kingdream Shareate Tools Ltd. and changed its name to Shareate Tools Ltd. in May 2012. Shareate Tools Ltd. was founded in 1973 and is headquartered in Suzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shareate Tools Ltd reported revenue of ¥2.5B in FY2025 versus ¥894M in FY2021, a compound +29.3%/yr. Reported net income was ¥237M in FY2025, compounding +14.8%/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)
2.5B CNY
Latest YoY
+34.3%
Avg. growth/yr (3Y)
+28.3%
Avg. growth/yr (5Y)
+27.9%
Avg. growth/yr (12Y)
+17.4%
Revenue +29.3%/yr
FY21 ¥894M
FY22 ¥1.2B
FY23 ¥1.5B
FY24 ¥1.9B
FY25 ¥2.5B
Net income +14.8%/yr
FY21 ¥136M
FY22 ¥147M
FY23 ¥163M
FY24 ¥181M
FY25 ¥237M

688257 screens 78% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "Shareate Tools Ltd Fair Value". https://www.fairvalue-calculator.com/stock/688257

Peer Group

Tools & Accessories · 120 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 48 · Bottom 25%
Fair Value upside −78% · Bottom 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth 112% · Top 25%
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 57.4× · Pricier than 75% of peers
P/B 12.07× · Pricier than 75% of peers
P/S (TTM) 9.24× · Pricier than 75% of peers
EV/EBITDA 37.3× · 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 3
FUTURE 100 · sector 14
PAST 78 · sector 28
HEALTH 99 · sector 96
DIVIDEND 5 · sector 36

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 Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$129.60 HK$81.05 -37%
Snap-on Incorporated SNA $410.99 $350.46 -15%
RBC Bearings Incorporated RBC $595.49 $184.29 -69%
Lincoln Electric Holdings LECO $252.58 $154.80 -39%
Stanley Black & Decker, Inc SWK $88.22 $54.24 -39%
AB SKF (publ) SKFB kr 258.90 kr 192.57 -26%
The Timken Company TKR $139.47 $66.33 -52%
The Toro Company TTC $94.42 $69.71 -26%
SFS Group SFSN CHF 140.00 CHF 118.30 -16%
Hangzhou Greatstar Industrial Co 002444 ¥29.33 ¥35.72 +22%

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Frequently asked questions

Is Shareate Tools Ltd (688257) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥14.01 versus a price of ¥63.00, about −78% (overvalued).
What is the fair value of 688257?
Our model-based fair value for Shareate Tools Ltd is ¥14.01 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥63.00.
What is the quality score of 688257?
Shareate Tools Ltd has a Quality Score of 48/100. 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 Shareate Tools Ltd (688257)?
Shareate Tools Ltd reported trailing-twelve-month revenue of about 3.1B CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688257?
The net profit margin of Shareate Tools Ltd is about 16.0%, meaning it keeps roughly 16.0% of revenue as net income. Based on the latest reported figures.
Does Shareate Tools Ltd pay a dividend?
Shareate Tools Ltd currently shows a dividend yield of about 0.27% relative to its recent price (as of Jul 12, 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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