Sun Hung Kai & Co. Limited

BST:SHK Stock Report

Market Cap: €637.1m

Sun Hung Kai Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 SHK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SHK's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SHK's fair value for valuation analysis.


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SHK. This is calculated by dividing SHK's market cap by their current revenue.
What is SHK's PS Ratio?
PS Ratio2.6x
SalesHK$2.02b
Market CapHK$5.25b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SHK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
OT8 Eleving Group
1.1x6.4%€190.9m
E4I Multitude
0.9x24.0%€103.6m
PBB Deutsche Pfandbriefbank
1.9x12.0%€678.4m
GLJ Grenke
1.3x14.1%€685.6m
SHK Sun Hung Kai
2.6x16.1%€5.2b

Price-To-Sales vs Peers: SHK is expensive based on its Price-To-Sales Ratio (2.6x) compared to the peer average (1.3x).


Price to Sales Ratio vs Industry

How does SHK's PS Ratio compare vs other companies in the European Consumer Finance Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
SHK 2.6xIndustry Avg. 1.6xNo. of Companies6PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SHK is expensive based on its Price-To-Sales Ratio (2.6x) compared to the European Consumer Finance industry average (1.6x).


Price to Sales Ratio vs Fair Ratio

What is SHK'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.

SHK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ratio3.3x

Price-To-Sales vs Fair Ratio: SHK is good value based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (3.3x).


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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