Galaxy Entertainment Group Valuation

Is KW9A 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-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 KW9A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KW9A (€3.96) is trading below our estimate of fair value (€18.27)

Significantly Below Fair Value: KW9A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KW9A?

Key metric: As KW9A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KW9A. This is calculated by dividing KW9A's market cap by their current earnings.
What is KW9A's PE Ratio?
PE Ratio	17.3x
Earnings	HK$8.33b
Market Cap	HK$144.23b

KW9A 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/Revenue	3.1x
Enterprise Value/EBITDA	12x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does KW9A's PE Ratio compare to its peers?

The above table shows the PE ratio for KW9A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.3x
TIMA ZEAL Network	19.9x	-5.0%	€933.4m
TUI1 TUI	7x	17.3%	€3.8b
EVO Evolution	15.3x	11.0%	SEK 201.8b
1928 Sands China	18.9x	19.3%	HK$155.6b
KW9A Galaxy Entertainment Group	17.3x	15.8%	€144.2b

Price-To-Earnings vs Peers: KW9A is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does KW9A's PE Ratio compare vs other companies in the European Hospitality Industry?

10 Companies	Price / Earnings	Estimated Growth	Market Cap

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KW9A is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the European Hospitality industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is KW9A'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.

KW9A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.3x
Fair PE Ratio	33.9x

Price-To-Earnings vs Fair Ratio: KW9A is good value based on its Price-To-Earnings Ratio (17.3x) compared to the estimated Fair Price-To-Earnings Ratio (33.9x).

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 KW9A forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€3.96	€5.96 +50.4%	13.9%	€7.76	€4.79	n/a	21
Nov ’25	€4.08	€5.81 +42.4%	14.6%	€7.61	€3.99	n/a	21
Oct ’25	€4.38	€5.55 +26.6%	16.1%	€7.43	€3.89	n/a	20
Sep ’25	€3.42	€5.53 +61.7%	16.1%	€7.41	€3.88	n/a	20
Aug ’25	€3.74	€5.99 +60.1%	12.4%	€7.55	€4.66	n/a	20
Jul ’25	€4.20	€6.13 +45.9%	11.9%	€7.65	€4.72	n/a	20
Jun ’25	€4.36	€6.05 +38.8%	11.9%	€7.57	€4.68	n/a	20
May ’25	€4.14	€6.34 +53.1%	12.7%	€7.62	€4.53	n/a	20
Apr ’25	€4.54	€6.53 +43.9%	10.9%	€7.64	€5.45	n/a	20
Mar ’25	€4.86	€6.62 +36.2%	10.9%	€7.78	€5.42	n/a	20
Feb ’25	€4.96	€6.73 +35.6%	9.4%	€7.77	€5.81	n/a	20
Jan ’25	€4.92	€7.09 +44.0%	9.2%	€8.30	€5.86	n/a	21
Dec ’24	€4.70	€7.06 +50.2%	8.3%	€8.17	€6.07	n/a	20
Nov ’24	€5.25	€7.70 +46.7%	7.4%	€8.62	€6.27	€4.08	19
Oct ’24	€5.60	€7.76 +38.6%	7.9%	€9.24	€6.29	€4.38	20
Sep ’24	€5.95	€7.61 +28.0%	9.0%	€8.98	€6.11	€3.42	20
Aug ’24	€6.40	€7.33 +14.6%	10.7%	€9.24	€5.86	€3.74	19
Jul ’24	€5.75	€7.34 +27.6%	9.4%	€8.77	€5.96	€4.20	18
Jun ’24	€5.65	€7.45 +31.8%	8.6%	€8.92	€6.07	€4.36	19
May ’24	€6.25	€7.19 +15.0%	9.3%	€8.72	€5.93	€4.14	18
Apr ’24	€6.05	€7.16 +18.2%	9.9%	€8.85	€6.02	€4.54	18
Mar ’24	€6.63	€7.23 +8.9%	10.0%	€9.03	€6.14	€4.86	19
Feb ’24	€6.49	€6.73 +3.7%	9.2%	€8.24	€5.78	€4.96	18
Jan ’24	€6.12	€6.45 +5.4%	13.1%	€8.24	€4.27	€4.92	18
Dec ’23	€5.85	€6.33 +8.2%	11.6%	€7.14	€4.27	€4.70	18
Nov ’23	€4.89	€6.70 +37.2%	11.8%	€7.77	€4.53	€5.25	18

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.