CK Hutchison Holdings Limited

DB:2CKA Stock Report

Market Cap: €18.7b

CK Hutchison Holdings Valuation

Is 2CKA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2CKA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2CKA (€4.6) is trading below our estimate of fair value (€17.08)

Significantly Below Fair Value: 2CKA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2CKA?

Key metric: As 2CKA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2CKA. This is calculated by dividing 2CKA's market cap by their current earnings.
What is 2CKA's PE Ratio?
PE Ratio6.9x
EarningsHK$22.50b
Market CapHK$154.35b

Price to Earnings Ratio vs Peers

How does 2CKA's PE Ratio compare to its peers?

The above table shows the PE ratio for 2CKA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.2x
SIE Siemens
16.9x5.9%€138.5b
INH INDUS Holding
8.7x14.9%€535.3m
MBB MBB
19.8x21.6%€532.7m
MTX MTU Aero Engines
23.4x10.3%€16.6b
2CKA CK Hutchison Holdings
6.9x10.9%€154.4b

Price-To-Earnings vs Peers: 2CKA is good value based on its Price-To-Earnings Ratio (6.9x) compared to the peer average (17.2x).

Price to Earnings Ratio vs Industry

How does 2CKA's PE Ratio compare vs other companies in the European Industrials Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2CKA 6.9xIndustry Avg. 16.8xNo. of Companies6PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2CKA is good value based on its Price-To-Earnings Ratio (6.9x) compared to the European Industrials industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is 2CKA'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.

2CKA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.9x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: 2CKA is good value based on its Price-To-Earnings Ratio (6.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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