The Discounted Cash Flow (DCF) valuation of China Mobile Ltd (941.HK) is 91.54 HKD. With the latest stock price at 86.60 HKD, the upside of China Mobile Ltd based on DCF is 5.7%.
Based on the latest price of 86.60 HKD and our DCF valuation, China Mobile Ltd (941.HK) is a buy. Buying 941.HK stocks now will result in a potential gain of 5.7%.
Range | Selected | |
WACC / Discount Rate | 6.3% - 8.1% | 7.2% |
Long-term Growth Rate | 0.0% - 1.0% | 0.5% |
Fair Price | 78.9 - 110.83 | 91.54 |
Upside | -8.9% - 28.0% | 5.7% |
(CNY in millions) | Projections | |||||
12-2020 | 12-2021 | 12-2022 | 12-2023 | 12-2024 | 12-2025 | |
Revenue | 768,070 | 829,464 | 871,159 | 909,982 | 945,856 | 964,773 |
% Growth | 3% | 8% | 5% | 4% | 4% | 2% |
Cost of goods sold | (279,524) | (301,867) | (317,041) | (331,170) | (344,226) | (351,110) |
% of Revenue | 36% | 36% | 36% | 36% | 36% | 36% |
Selling, G&A expenses | (161,652) | (174,573) | (183,349) | (191,519) | (199,070) | (203,051) |
% of Revenue | 21% | 21% | 21% | 21% | 21% | 21% |
Research & Development | (4,898) | (5,290) | (5,555) | (5,803) | (6,032) | (6,152) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Net interest & other expenses | (179,637) | (193,996) | (203,748) | (212,827) | (221,218) | (225,642) |
% of Revenue | 23% | 23% | 23% | 23% | 23% | 23% |
Tax expense | (34,219) | (36,954) | (38,812) | (40,541) | (42,140) | (42,983) |
Tax rate | 24% | 24% | 24% | 24% | 24% | 24% |
Net profit | 108,140 | 116,784 | 122,654 | 128,120 | 133,171 | 135,835 |
% Margin | 14% | 14% | 14% | 14% | 14% | 14% |