The Hongkong and Shanghai Hotels, Limited

DB:HSG Stock Report

Market Cap: €1.3b

Hongkong and Shanghai Hotels Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HSG (€0.72) is trading below our estimate of fair value (€24.67)

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

Key Valuation Metric

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

Key metric: As HSG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HSG. This is calculated by dividing HSG's market cap by their current revenue.
What is HSG's PS Ratio?
PS Ratio1x
SalesHK$10.28b
Market CapHK$10.29b

Price to Sales Ratio vs Peers

How does HSG's PS Ratio compare to its peers?

The above table shows the PS ratio for HSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
TUI1 TUI
0.2x3.8%€3.8b
IFA LS Invest
2.3xn/a€296.1m
HTG HomeToGo
1.2x13.6%€244.0m
CDZ0 MHP Hotel
0.3x11.8%€47.1m
HSG Hongkong and Shanghai Hotels
1xn/a€10.3b

Price-To-Sales vs Peers: HSG is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does HSG's PS Ratio compare vs other companies in the DE Hospitality Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
MS1 Marley Spoon Group
0.07x10.0%US$13.85m
9UX Hostmore
0.0006xn/aUS$138.43k
No more companies available in this PS range
HSG 1.0xIndustry Avg. 1.0xNo. of Companies4PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HSG is good value based on its Price-To-Sales Ratio (1x) compared to the European Hospitality industry average (1x).

Price to Sales Ratio vs Fair Ratio

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

HSG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate HSG's Price-To-Sales Fair Ratio for valuation analysis.

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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