China Evergrande Group Plc (SEHK:3333) - A Valuation On 16th September 2021

The second-largest Chinese real estate developer has borrowed too much and faces a severe liquidity crisis. Can they get through this and restructure the debt?

Summary

Evergrande is a large Chinese real-estate developer that has borrowed too much and is facing a severe liquidity crisis. I am going with analysts consensus for revenue growth and operating margins and am assuming that the company will find a way to stave off collapse. Even with this, the enormous debt burden is crushing the company and leaving nothing for the equity holders.

Market Price = HK$ 2.81
Estimated Value = Nil
Monte-Carlo Price Percentile = 96%
Rating At Current Price = SELL