Dah Sing Financial Holdings Limited

SEHK:440 Stock Report

Market Cap: HK$7.9b

Dah Sing Financial Holdings Valuation

Is 440 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 440 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 440 (HK$24.65) is trading below our estimate of fair value (HK$39.74)

Significantly Below Fair Value: 440 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 440?

Key metric: As 440 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 440. This is calculated by dividing 440's market cap by their current earnings.
What is 440's PE Ratio?
PE Ratio4.4x
EarningsHK$1.78b
Market CapHK$7.88b

Price to Earnings Ratio vs Peers

How does 440's PE Ratio compare to its peers?

The above table shows the PE ratio for 440 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.3x
2356 Dah Sing Banking Group
4.7x5.6%HK$10.0b
9668 China Bohai Bank
4.2xn/aHK$16.7b
23 Bank of East Asia
8.4x12.8%HK$25.2b
2016 China Zheshang Bank
3.8x10.2%HK$78.6b
440 Dah Sing Financial Holdings
4.4x4.3%HK$7.9b

Price-To-Earnings vs Peers: 440 is good value based on its Price-To-Earnings Ratio (4.4x) compared to the peer average (5.3x).


Price to Earnings Ratio vs Industry

How does 440's PE Ratio compare vs other companies in the HK Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
440 4.4xIndustry Avg. 4.7xNo. of Companies11PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 440 is good value based on its Price-To-Earnings Ratio (4.4x) compared to the Hong Kong Banks industry average (4.7x).


Price to Earnings Ratio vs Fair Ratio

What is 440'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.

440 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.4x
Fair PE Ratio3.8x

Price-To-Earnings vs Fair Ratio: 440 is expensive based on its Price-To-Earnings Ratio (4.4x) compared to the estimated Fair Price-To-Earnings Ratio (3.8x).


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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