A gearing ratio measures a company's overall debt against its value. To stock analysts, investors, and lenders, the gearing ratio is an indicator of the company's financial fitness.

Vanke’s net gearing ratio has deteriorated and exceeded most state-owned peers, and we view its balance-sheet strength as weak given its three-year forward average net debt/EBITDA ratio of ...

Our fair value estimate for Vanke is CNY 6.30 per share, implying 2025 price/book of 0.2 times. Our valuation is based on a cost of equity of 12.5% and a weighted average cost of capital of 10.9%.