Bama Tea Co Ltd (6980) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Bama Tea Co Ltd HK$52.48, price HK$27.02, upside +94.2%, quality 62 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 2, 2026.
How to read this chart
11‑month range HK$18.95 – HK$96.15 · fair‑value band HK$42.51 – HK$68.22 · the HK$27.02 price screens below the HK$52.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 2, 2026.
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BAMA TEA Co., Ltd. produces, processes, and sells tea leaves and other tea products in China. The company tea, which includes Oolong tea, black tea, dark tea, white tea, green tea, and yellow tea; tea-related derivatives, such as tea ware, tea snacks, and tea beverages. It offers its products under the Bama brand name.
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BAMA TEA Co., Ltd. produces, processes, and sells tea leaves and other tea products in China. The company tea, which includes Oolong tea, black tea, dark tea, white tea, green tea, and yellow tea; tea-related derivatives, such as tea ware, tea snacks, and tea beverages. It offers its products under the Bama brand name. In addition, the company provides liquor, incense sticks, tea toys, pre-opening training services, as well as tea lounge services and franchises. The company was incorporated in 1997 and is based in Shenzhen, China.
Stock analysis
Bama Tea Co Ltd (6980) currently trades at HK$27.02, while our model-based Fair Value estimate is HK$52.48, implying the stock looks roughly 48.5% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of HK$60.49 per share, and 20 of the 23 models we run sit above the HK$27.02 price.
Bear case: the Asset-Based group reads lowest at HK$15.91, and 3 of the 23 models stay below the price. Evidence for this calculation is high.
Scenario range: HK$42.51 (bear) to HK$68.22 (bull), the price of HK$27.02 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 62/100 (solid quality), in the Consumer Defensive sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Bama Tea Co Ltd reported revenue of 2.2B CNY in FY2025 versus 1.8B CNY in FY2022, a compound +6.5%/yr. Reported net income was 222M CNY in FY2025, compounding +10.2%/yr from FY2022.
Key figures
Market cap HK$3.2B (≈ $406M) · P/E ratio 6.7 · P/S ratio 0.68 · EPS (TTM) HK$1.58 · Dividend yield 4.4% · Net margin 10.1% · Return on equity 19.3% · Return on assets (EBIT) 15.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 72% below its 52-week high and 43% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 9% fair-value upside, at 94%, 6980 screens cheaper than that median.
Fair Value models
Bear HK$42.51Fair Value HK$52.48Bull HK$68.22
Price HK$27.02 · Upside +94.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (HK$0.2884 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+2.5%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+6.5%
’22
’23
’24
’25
What shareholders gained per year (last 3 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+10.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.1%
Dividend (yield on the price)4.4%
Profit margin 2022 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 14%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−8.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (figures in CNY, China: IMF forecast 1.7% a year to 2030, 1.4% from 2016 to 2025) that is about −9.8% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Packaged Foods · 634 stocks
Beats the industry median on 11/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside+94.2% · Top 25%
Profitability
Return on equity (TTM)19.3% · Top 25%
Return on assets11.1% · Top 25%
Net margin (TTM)11.9% · Top 25%
Operating margin (TTM)19.1% · Top 25%
Growth and dividend
Revenue growth31.8% · Top 25%
Dividend yield (TTM)4.4% · Above median
Valuation Multiplesvs Packaged Foods median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Bama Tea Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/6980
Frequently asked questions
Is Bama Tea Co Ltd (6980) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of HK$52.48 versus a price of HK$27.02, about +94% upside (undervalued).
What is the fair value of 6980?
Our model-based fair value for Bama Tea Co Ltd is HK$52.48 (as of Oct 2, 2026), built from audited fundamentals. The current price: HK$27.02.
What is the quality score of 6980?
Bama Tea Co Ltd has a Quality Score of 62/100. 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 price target for Bama Tea Co Ltd (6980)?
Our model-based price target is the fair value of HK$52.48 (as of Oct 2, 2026) from 23 valuation models. Cautious scenario HK$42.51, optimistic scenario HK$68.22. It is a calculation from audited fundamentals, not an analyst target.
What is the Bama Tea Co Ltd stock forecast for 2026?
Our models put fair value at HK$52.48, about +94% upside versus a price of HK$27.02 (undervalued). Cautious scenario HK$42.51, optimistic scenario HK$68.22. The calculation is refreshed regularly with new filings.
What is the revenue of Bama Tea Co Ltd (6980)?
Bama Tea Co Ltd reported trailing-twelve-month revenue of about 2.5B CNY (latest available figure, as of Oct 2, 2026).
Does Bama Tea Co Ltd pay a dividend?
Bama Tea Co Ltd currently shows a dividend yield of about 4.44% relative to its recent price (as of Oct 2, 2026).
What growth is priced into Bama Tea Co Ltd (6980)?
For today's price to be fair in a discounted-cash-flow model, Bama Tea Co Ltd would have to grow free cash flow by -8.3 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 3 years revenue grew +6.5 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of 6980 use?
Our models discount Bama Tea Co Ltd at 11.8 %: a base by market capitalisation (small), country premium for Hong Kong. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bama Tea Co Ltd that is -8.3 % per year a year over ten years, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Bama Tea Co Ltd (6980) delivered so far?
Over the past 3 years revenue at Bama Tea Co Ltd grew +6.5 % a year. The price currently implies -8.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bama Tea Co Ltd (6980) growing?
The median revenue growth in the sector is +0.9 % a year. That is the yardstick for the growth priced into Bama Tea Co Ltd (-8.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bama Tea Co Ltd (6980)?
The free-cash-flow yield on the price is 12.78 %: that much free cash flow Bama Tea Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bama Tea Co Ltd (6980)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bama Tea Co Ltd it is HK$52.48 per share (as of Oct 2, 2026), against a price of HK$27.02. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is Bama Tea Co Ltd stock overvalued or undervalued in 2026?
As of Oct 2, 2026, 6980 trades below its calculated fair value: price HK$27.02, fair value HK$52.48, a gap of about +94% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 6980?
No. The price is what the market pays today (HK$27.02); the fair value is what the company's own numbers justify (HK$52.48). For Bama Tea Co Ltd the two are HK$25.46 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bama Tea Co Ltd worth?
The market values Bama Tea Co Ltd at about HK$3.2B (market capitalisation, as of Oct 2, 2026). Per share that is HK$27.02; our models calculate a fair value of HK$52.48 per share.
What do the bullish and bearish scenarios say about 6980?
Our models span a range for Bama Tea Co Ltd: cautious scenario HK$42.51, base HK$52.48, optimistic HK$68.22 per share (as of Oct 2, 2026, price HK$27.02). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 6980?
Bama Tea Co Ltd trades at a price-to-earnings ratio of 6.7 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of HK$52.48 is built from several models across several years. Other multiples: P/B 1.6, P/S 1.1, EV/EBITDA 4.0.
How solid is the balance sheet of Bama Tea Co Ltd (6980)?
Balance-sheet figures for Bama Tea Co Ltd (as of Oct 2, 2026): return on equity 19.3%. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is 6980 from its 52-week high?
Bama Tea Co Ltd trades at HK$27.02, about 72% below its 52-week high of HK$96.15 and 43% above the low of HK$18.95 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of HK$52.48 is for.
Which stocks are comparable to Bama Tea Co Ltd?
From the same area (Consumer Defensive) we also value Nestlé S.A, Danone S.A, Foshan Haitian Flavouring and Food Company, The Kraft Heinz Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bama Tea Co Ltd stock attractive at the current price?
The data as of Oct 2, 2026: price HK$27.02, calculated fair value HK$52.48 (+94%), Quality Score 62/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 6980 calculated?
We run Bama Tea Co Ltd through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$52.48, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.9 % above its aggregate fair value. Bama Tea Co Ltd currently trades 49 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bama Tea Co Ltd (6980)?
The closing price on Oct 2, 2026 was HK$27.02. Our model-based fair value is HK$52.48, about +94% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bama Tea Co Ltd right now?
The price is below even our cautious bear case (HK$42.51). The market is more pessimistic than our downside scenario. Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Bama Tea Co Ltd
How large is the market capitalisation of Bama Tea Co Ltd (6980)?
The market capitalisation of Bama Tea Co Ltd is HK$3.2B (≈ $406M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bama Tea Co Ltd (6980)?
The price-to-sales ratio of Bama Tea Co Ltd is 0.68 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bama Tea Co Ltd (6980)?
Earnings per share at Bama Tea Co Ltd are HK$1.58 (price ÷ EPS = P/E 6.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bama Tea Co Ltd (6980)?
The dividend yield of Bama Tea Co Ltd is 4.4% (payout 75.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Bama Tea Co Ltd (6980)?
The net margin of Bama Tea Co Ltd is 10.1% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Bama Tea Co Ltd (6980)?
The return on equity (ROE) of Bama Tea Co Ltd is 19.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Bama Tea Co Ltd (6980)?
On an EBIT basis the return on assets of Bama Tea Co Ltd is 15.5% (avg 4y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bama Tea Co Ltd (6980)?
The operating margin of Bama Tea Co Ltd is 19.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bama Tea Co Ltd (6980)?
Revenue at Bama Tea Co Ltd is growing +31.8% versus a year earlier (3y avg +6.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bama Tea Co Ltd (6980)?
Earnings per share at Bama Tea Co Ltd are growing +47.8% versus a year earlier. How much earnings per share grew versus a year earlier.
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