Hon Hai Precision Industry Co., Ltd.

LSE:HHPD Stock Report

Market Cap: US$87.1b

Hon Hai Precision Industry Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: HHPD ($12.4) is trading above our estimate of fair value ($7.32)

Significantly Below Fair Value: HHPD is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HHPD. This is calculated by dividing HHPD's market cap by their current earnings.
What is HHPD's PE Ratio?
PE Ratio17.7x
EarningsNT$159.52b
Market CapNT$2.83t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HHPD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.3x
HLMA Halma
35.3x8.6%UK£9.5b
GHH Gooch & Housego
91.2x72.8%UK£117.3m
601138 Foxconn Industrial Internet
20.8x20.8%CN¥471.3b
TEL TE Connectivity
13.8x-3.2%US$44.4b
HHPD Hon Hai Precision Industry
17.7x20.1%US$2.8t

Price-To-Earnings vs Peers: HHPD is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (40.3x).

Price to Earnings Ratio vs Industry

How does HHPD's PE Ratio compare vs other companies in the European Electronic Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HHPD 17.7xIndustry Avg. 17.7xNo. of Companies18PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HHPD is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the European Electronic industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is HHPD'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.

HHPD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio44.8x

Price-To-Earnings vs Fair Ratio: HHPD is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (44.8x).

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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