We’ve recently updated our valuation analysis.

Hotel Property Investments Valuation

Is HPI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HPI?

Other financial metrics that can be useful for relative valuation.

HPI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue15.8x
Enterprise Value/EBITDA20.3x
PEG Ratio-0.07x

Price to Earnings Ratio vs Peers

How does HPI's PE Ratio compare to its peers?

The above table shows the PE ratio for HPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.8x
RFF Rural Funds Group
4.7x-47.0%AU$963.0m
ARF Arena REIT
3.9x-46.1%AU$1.3b
CQE Charter Hall Social Infrastructure REIT
3.5x-33.2%AU$1.3b
NSR National Storage REIT
103.2x15.4%AU$2.8b
HPI Hotel Property Investments
3.3x-49.9%AU$704.3m

Price-To-Earnings vs Peers: HPI is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (29.5x).


Price to Earnings Ratio vs Industry

How does HPI's PE Ratio compare vs other companies in the AU REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-5.6%
n/an/an/a

Price-To-Earnings vs Industry: HPI is good value based on its Price-To-Earnings Ratio (3.3x) compared to the Australian REITs industry average (7.1x)


Price to Earnings Ratio vs Fair Ratio

What is HPI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HPI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ratio4.4x

Price-To-Earnings vs Fair Ratio: HPI is good value based on its Price-To-Earnings Ratio (3.3x) compared to the estimated Fair Price-To-Earnings Ratio (4.4x).


Share Price vs Fair Value

What is the Fair Price of HPI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HPI (A$3.64) is trading above our estimate of fair value (A$3)

Significantly Below Fair Value: HPI is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HPI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.64
AU$3.64
+0.1%
7.9%AU$4.00AU$3.20n/a4
Jan ’24AU$3.56
AU$3.61
+1.3%
7.4%AU$4.00AU$3.20n/a5
Dec ’23AU$3.37
AU$3.61
+7.0%
7.4%AU$4.00AU$3.20n/a5
Nov ’23AU$3.16
AU$3.62
+14.5%
7.5%AU$4.00AU$3.20n/a5
Oct ’23AU$2.93
AU$3.65
+24.5%
7.1%AU$4.00AU$3.20n/a6
Sep ’23AU$3.27
AU$3.65
+11.5%
7.1%AU$4.00AU$3.20n/a6
Aug ’23AU$3.33
AU$3.67
+10.1%
7.3%AU$4.00AU$3.20n/a6
Jul ’23AU$3.10
AU$3.68
+18.7%
7.4%AU$4.00AU$3.20n/a6
Jun ’23AU$3.57
AU$3.75
+5.1%
8.8%AU$4.30AU$3.20n/a6
May ’23AU$4.06
AU$3.78
-6.8%
9.1%AU$4.30AU$3.20n/a6
Apr ’23AU$3.88
AU$3.75
-3.5%
10.1%AU$4.30AU$3.20n/a6
Mar ’23AU$3.70
AU$3.73
+0.9%
11.0%AU$4.30AU$3.20n/a5
Feb ’23AU$3.50
AU$3.66
+4.5%
10.8%AU$4.15AU$3.10AU$3.635
Jan ’23AU$3.74
AU$3.62
-3.3%
11.2%AU$4.15AU$3.10AU$3.565
Dec ’22AU$3.47
AU$3.54
+1.9%
10.1%AU$4.15AU$3.10AU$3.375
Nov ’22AU$3.54
AU$3.54
-0.08%
10.1%AU$4.15AU$3.10AU$3.165
Oct ’22AU$3.39
AU$3.54
+4.3%
10.1%AU$4.15AU$3.10AU$2.935
Sep ’22AU$3.43
AU$3.39
-1.1%
6.2%AU$3.60AU$3.10AU$3.274
Aug ’22AU$3.27
AU$3.32
+1.7%
7.4%AU$3.60AU$3.00AU$3.334
Jul ’22AU$3.20
AU$3.33
+4.0%
7.3%AU$3.60AU$3.00AU$3.104
Jun ’22AU$3.23
AU$3.27
+1.4%
6.6%AU$3.60AU$3.00AU$3.574
May ’22AU$3.08
AU$3.27
+6.3%
6.6%AU$3.60AU$3.00AU$4.064
Apr ’22AU$3.04
AU$3.27
+7.7%
6.6%AU$3.60AU$3.00AU$3.884
Mar ’22AU$2.97
AU$3.35
+12.7%
7.3%AU$3.64AU$3.00AU$3.705
Feb ’22AU$3.10
AU$3.33
+7.4%
7.7%AU$3.64AU$3.00AU$3.505

Analyst Forecast: Target price is less than 20% higher than the current share price.


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