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Fidelity China Special Situations PLC (FCSS) Fair Value & Analysis

Financial Services · GB · Market cap 1.1B GBX

FC Fidelity China Special Situations PLC FCSS · LSE
Price£2.51
Fair Value£4.34
Upside+72.9%
Quality56/100
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Weak Growth
Thin margins · 0.0% net margin
Low debt · generates free cash flow
3.50% dividend yield
Mixed vs. peers (6/13)
Moderate moat 58/100
Evidence: High Range £3.25 – £5.42 Share as image

Fair value as of: Jul 20, 2026

From 11 valuation models · updated 20 days ago

Fair value updated Jul 20, 2026, revised from £4.30 to £4.34 (+0.9%) since Jun 26, 2026. Share price +3.3% over the past month.

A solid business, screening 73% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£3.25). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£3.40 £1.47 Fair Value £4.34 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range £1.47 – £3.40 · fair‑value band £3.25 – £5.42 · the £2.51 price screens below the £4.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Fidelity China Special Situations PLC (FCSS) currently trades at £2.51, while our model-based Fair Value estimate is £4.34, implying the stock looks roughly 72.9% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Financial Services 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.

It earns a return on equity of 30.6%. The balance sheet holds a net cash position of £48.1M. The stock trades on a trailing P/E of 2.6. Fundamentals as of Jul 20, 2026

Our scenario range runs from £3.25 (bear case) to £5.42 (bull case); at £2.51, 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. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at 73%, FCSS 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 BearBaseBull Evidence
Highest evidence
Growth DCF £4.32 £7.51 £12.53 80
Residual Income £2.57 £2.80 £3.50 76
Gordon GGM £0.7600 £1.36 £1.88 70
All 11 models by family
DCF Models
5Y P/E Exit £3.57 £7.44 £12.61 38
10Y P/E Exit £3.94 £7.89 £14.14 35
Earnings-Based
Graham-Dodd £2.15 £14.97 £21.00 54
Lynch FV £7.73 £11.05 £14.36 50
Dividend Discount
Gordon GGM £0.7600 £1.36 £1.88 70
DDM Multi-Stage £0.7600 £1.24 £1.46 61
Multiples
P/E Multiple £3.08 £4.10 £5.13 63
P/B Multiple £3.25 £4.34 £5.42 55
Asset-Based
NCAV (Graham) £1.55 £2.08 £3.10 50
Growth DCF
Growth DCF £4.32 £7.51 £12.53 80
Economic Profit
Residual Income £2.57 £2.80 £3.50 76

Widest divergence: Earnings-Based (£11.05) versus Dividend Discount (£1.24). Highest evidence: Growth DCF (80).

Key figures & financial health

Return on equity 30.6%
Free cash flow 157M GBX FY2026
P/E ratio 2.6
EPS (TTM) £0.3000
Dividend yield 3.5%
Net cash 48.1M GBX FY2026

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 53 · Market factors (momentum, volatility) 44

Profitability 46
Margins and returns on capital today
Quality Growth 6
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 98
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

Fidelity China Special Situations PLC is a close-ended equity mutual fund launched and managed by FIL Investment Services (UK) Limited. The fund is co-managed by FIL Investment Management (Hong Kong) Limited and FIL Investments International.

Full company description

Fidelity China Special Situations PLC is a close-ended equity mutual fund launched and managed by FIL Investment Services (UK) Limited. The fund is co-managed by FIL Investment Management (Hong Kong) Limited and FIL Investments International. It invests in the public equity markets of China, which includes companies listed in China or Hong Kong and Chinese companies on other stock exchanges. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in growth stocks of companies. The fund also invests in derivative instruments. It conducts in-house research to make its investments. The fund benchmarks the performance of its portfolio against the MSCI China Index. Fidelity China Special Situations PLC was formed on January 22, 2010 and is domiciled in the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Fidelity China Special Situations PLC reported revenue of £186M in FY2026 versus −£749M in FY2022. Reported net income was £144M in FY2026.

Growth Quality 39/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£186M
Latest YoY
−48.8%
Avg. growth/yr (3Y)
+93.1%
Avg. growth/yr (5Y)
−28.5%
Avg. growth/yr (15Y)
+12.5%
Revenue
FY22 −£749M
FY23 £25.8M
FY24 −£211M
FY25 £363M
FY26 £186M
Net income
FY22 −£754M
FY23 £23.3M
FY24 −£213M
FY25 £338M
FY26 £144M

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Cite: Fair Value Calculator (2026). "Fidelity China Special Situations PLC Fair Value". https://www.fairvalue-calculator.com/stock/FCSS

Peer Group

Asset Management · 973 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 54 · Below median
Fair Value upside +73% · Top 25%
Return on equity (TTM) 31% · Top 25%
Return on assets 0% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 0% · Bottom 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 3.5% · Above median
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 2.6× · Cheaper than 75% of peers
P/B 1.09× · Pricier than median
P/FCF 9.9× · Cheaper than median
EV/EBITDA 10.8× · Pricier than median

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 37
FUTURE 0 · sector 6
PAST 100 · sector 26
HEALTH 97 · sector 95
DIVIDEND 70 · sector 69

Insider activity: 45/100

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 Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
Fondul Proprietatea SA FP $0.0420 $0.0800 +90%
BlackRock, Inc BLK $1,136 $465.75 -59%
Blackstone Inc BX $124.56 $16.35 -87%
Investor AB INVEB kr 423.70 kr 847.40 +100%
Brookfield Corporation BN C$62.45 C$10.12 -84%
KKR & Co KKR $100.94 $44.88 -56%
AB Industrivärden INDUA kr 532.50 kr 1,065 +100%
Jio Financial Services Limited JIOFIN ₹242.98 ₹40.19 -83%
Hedef Holding HEDEF 267.25 TRY 320.98 TRY +20%
Bajaj Holdings BAJAJHLDNG ₹10,398 ₹9,202 -12%

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Frequently asked questions

Is Fidelity China Special Situations PLC (FCSS) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of £4.34 versus a price of £2.51, about +73% (undervalued).
What is the fair value of FCSS?
Our model-based fair value for Fidelity China Special Situations PLC is £4.34 (as of Jul 20, 2026), built from audited fundamentals. The current price is £2.51.
What is the quality score of FCSS?
Fidelity China Special Situations PLC has a Quality Score of 56/100. 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 net profit margin of FCSS?
The net profit margin of Fidelity China Special Situations PLC is about 0.0%, meaning it keeps roughly 0.0% 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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