Sun Hung Kai Properties Limited

DB:SHG Stock Report

Market Cap: €25.0b

Sun Hung Kai Properties Valuation

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

Discounted Cash Flow
Simply Wall St
€10.53
Fair Value
17.8% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: SHG (€8.65) is trading below our estimate of fair value (€10.53)

Significantly Below Fair Value: SHG is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SHG. This is calculated by dividing SHG's market cap by their current earnings.
What is SHG's PE Ratio?
PE Ratio10.6x
EarningsHK$19.05b
Market CapHK$202.27b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23x
FC9 FCR Immobilien
14.3x8.8%€105.6m
8801 Mitsui Fudosan
21.2x11.2%JP¥3.9t
DLF DLF
46.3x13.2%₹1.9t
1925 Daiwa House Industry
10.3x4.1%JP¥3.1t
SHG Sun Hung Kai Properties
10.6x12.3%€202.3b

Price-To-Earnings vs Peers: SHG is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

How does SHG's PE Ratio compare vs other companies in the DE Real Estate Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTY Gateway Real Estate
0.8xn/aUS$169.40m
ADJ Adler Group
0.05xn/aUS$47.58m
AAA A.A.A. Allgemeine Anlageverwaltung
2.6xn/aUS$47.44m
N9H Global Connectivity
0.2xn/aUS$2.22m
No more companies available in this PE range
SHG 10.6xIndustry Avg. 18.9xNo. of Companies4PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHG is good value based on its Price-To-Earnings Ratio (10.6x) compared to the European Real Estate industry average (18.9x).

Price to Earnings Ratio vs Fair Ratio

What is SHG'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.

SHG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ratio24.3x

Price-To-Earnings vs Fair Ratio: SHG is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.3x).

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 SHG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.65
€11.55
+33.5%
15.2%€14.47€7.93n/a15
Jan ’26€9.20
€11.67
+26.8%
14.6%€14.36€7.87n/a15
Dec ’25€9.30
€11.47
+23.3%
14.5%€14.12€7.74n/a15
Nov ’25€10.00
€11.12
+11.2%
15.0%€13.70€8.27n/a15
Oct ’25€9.85
€10.34
+5.0%
13.2%€13.31€8.10n/a15
Sep ’25€8.95
€10.39
+16.1%
14.4%€13.34€7.89n/a15
Aug ’25€8.00
€10.73
+34.1%
15.4%€13.60€8.04n/a15
Jul ’25€8.00
€10.93
+36.6%
14.8%€13.75€8.43n/a15
Jun ’25€8.85
€10.79
+21.9%
14.9%€13.61€8.34n/a15
May ’25€8.55
€10.77
+26.0%
14.8%€13.57€8.32n/a15
Apr ’25€8.80
€10.77
+22.4%
14.8%€13.57€8.32n/a15
Mar ’25€9.25
€10.73
+16.0%
14.9%€13.56€8.31n/a15
Feb ’25€8.45
€11.46
+35.6%
12.5%€14.81€9.40€8.6514
Jan ’25€9.55
€11.89
+24.5%
14.5%€15.18€9.43€9.2014
Dec ’24€8.80
€12.03
+36.7%
15.4%€15.34€9.53€9.3014
Nov ’24€9.95
€12.03
+20.9%
15.4%€15.34€9.53€10.0014
Oct ’24€9.85
€12.76
+29.5%
14.3%€15.71€9.53€9.8514
Sep ’24€10.10
€14.17
+40.3%
7.9%€15.63€11.19€8.9514
Aug ’24€11.10
€14.13
+27.3%
7.8%€15.44€11.05€8.0014
Jul ’24€11.30
€14.50
+28.4%
7.9%€15.99€11.15€8.0014
Jun ’24€11.60
€14.82
+27.8%
7.6%€16.24€11.33€8.8514
May ’24€12.40
€14.34
+15.6%
7.5%€15.70€10.95€8.5514
Apr ’24€12.51
€14.57
+16.5%
7.6%€15.98€11.14€8.8014
Mar ’24€12.84
€14.90
+16.1%
7.8%€16.40€11.44€9.2514
Feb ’24€12.79
€13.89
+8.6%
9.2%€15.36€9.87€8.4514
Analyst Price Target
Consensus Narrative from 15 Analysts
€11.47
Fair Value
24.6% undervalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/03 10:32
End of Day Share Price 2025/01/31 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sun Hung Kai Properties Limited is covered by 42 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kwok Yi LouieBarclays
Andrew LawrenceBarclays
C WongBNP Paribas Securities (Asia)