Huadong Medicine Co (SZSE:000963) Margin of Safety % (DCF FCF Based): 37.09% (As of Aug. 05, 2026)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SZSE:000963 Huadong Medicine Co Ltd SZSE:000963
86 GF Score
Price ¥27.76
GF Value ¥39.72
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Huadong Medicine Co Margin of Safety % (DCF FCF Based)?

Huadong Medicine Co SZSE:000963 -0.57% 86 Margin of Safety % (DCF FCF Based) is 37.09% as of Aug. 05, 2026. GuruFocus rates SZSE:000963 with a GF Score™ of 86/100 and a GF Value™ of ¥39.72 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-08-05), Huadong Medicine Co's Predictability Rank is 4-Stars. Huadong Medicine Co's intrinsic value calculated from the Discounted FCF model is ¥32.28 and current share price is ¥27.76. Consequently,

Huadong Medicine Co's Margin of Safety % (DCF FCF Based) using Discounted FCF model is 37.09%.


SZSE:000963 vs ZTS: Margin of Safety % (DCF FCF Based) Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Huadong Medicine Co's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Huadong Medicine Co Margin of Safety % (DCF FCF Based) vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Huadong Medicine Co's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Huadong Medicine Co's Margin of Safety % (DCF FCF Based) falls into.


SZSE:000963
86GF Score
Huadong Medicine Co Ltd SZSE:000963
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Huadong Medicine Co Margin of Safety % (DCF FCF Based) Calculation

Huadong Medicine Co's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(44.13-27.76)/44.13
=37.09 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of 37.09% mean?
Huadong Medicine Co (SZSE:000963) has a Margin of Safety % (DCF FCF Based) of 37.09% as of Aug. 05, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Huadong Medicine Co.
Is Huadong Medicine Co's Margin of Safety % (DCF FCF Based) too high?
Huadong Medicine Co's current Margin of Safety % (DCF FCF Based) is 37.09%. Overall, Huadong Medicine Co has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's Margin of Safety % (DCF FCF Based) compare to ZTS?
Huadong Medicine Co's Margin of Safety % (DCF FCF Based) of 37.09% can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Drug Manufacturers company?
A good Margin of Safety % (DCF FCF Based) depends on the Drug Manufacturers industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Huadong Medicine Co. Huadong Medicine Co's current Margin of Safety % (DCF FCF Based) is 37.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥39.72, compared to a current price of ¥27.76 — trading 30.1% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is 37.09%. Huadong Medicine Co's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Huadong Medicine Co (SZSE:000963), the current Margin of Safety % (DCF FCF Based) is 37.09% as of Aug. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Huadong Medicine Co (SZSE:000963) Overvalued in 2026?

Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued. The current stock price of ¥27.76 is trading 30.1% below its estimated GF Value™ of ¥39.72. GuruFocus considers Huadong Medicine Co to be Significantly Undervalued.

Key valuation signals for SZSE:000963:

  • Margin of Safety % (DCF FCF Based): 37.09%
  • GF Value™: ¥39.72 vs. price of ¥27.76 (30.1% below fair value)
  • GF Score™: 86/100 with 2 warning signs

No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Huadong Medicine Co Business Description

Address No. 866, Moganshan Road, Zhejiang Province, Hangzhou, CHN, 310011
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
86GF Score

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Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥27.76
Price
¥39.72
GF Value