BOC Hong Kong (Holdings) Limited

SHSC:2388 Stock Report

Market Cap: HK$274.9b

BOC Hong Kong (Holdings) Valuation

Is 2388 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 2388 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2388 (HK$26) is trading below our estimate of fair value (HK$53.04)

Significantly Below Fair Value: 2388 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2388?

Other financial metrics that can be useful for relative valuation.

2388 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio6.1x

Price to Earnings Ratio vs Peers

How does 2388's PE Ratio compare to its peers?

The above table shows the PE ratio for 2388 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.1x
998 China CITIC Bank
4x6.6%HK$356.2b
11 Hang Seng Bank
10.5x1.7%HK$180.0b
1658 Postal Savings Bank of China
5.1x6.2%HK$544.1b
3328 Bank of Communications
4.8x5.7%HK$518.1b
2388 BOC Hong Kong (Holdings)
7.7x1.3%HK$274.9b

Price-To-Earnings vs Peers: 2388 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (6.1x).


Price to Earnings Ratio vs Industry

How does 2388's PE Ratio compare vs other companies in the HK Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 2388 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the Hong Kong Banks industry average (4.8x).


Price to Earnings Ratio vs Fair Ratio

What is 2388'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.

2388 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio4.5x

Price-To-Earnings vs Fair Ratio: 2388 is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (4.5x).


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 2388 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$26.00
HK$28.38
+9.1%
8.7%HK$33.00HK$24.12n/a14
Oct ’25HK$24.90
HK$27.85
+11.8%
9.3%HK$33.00HK$23.80n/a14
Sep ’25HK$24.60
HK$27.72
+12.7%
9.3%HK$33.00HK$23.80n/a14
Aug ’25HK$22.50
HK$27.41
+21.8%
8.7%HK$33.00HK$23.80n/a14
Jul ’25HK$24.05
HK$27.17
+13.0%
10.1%HK$33.00HK$21.80n/a14
Jun ’25HK$24.50
HK$27.17
+10.9%
10.1%HK$33.00HK$21.80n/a14
May ’25HK$24.15
HK$26.85
+11.2%
10.7%HK$33.00HK$21.80n/a13
Apr ’25HK$20.95
HK$26.40
+26.0%
12.3%HK$33.00HK$20.00n/a13
Mar ’25HK$20.45
HK$25.89
+26.6%
14.9%HK$33.00HK$20.00n/a13
Feb ’25HK$18.56
HK$25.89
+39.5%
14.9%HK$33.00HK$20.00n/a13
Jan ’25HK$21.20
HK$27.63
+30.3%
12.1%HK$33.00HK$20.00n/a13
Dec ’24HK$20.75
HK$28.69
+38.3%
9.5%HK$35.50HK$25.72n/a13
Nov ’24HK$20.85
HK$29.60
+42.0%
11.7%HK$35.50HK$25.72HK$25.7014
Oct ’24HK$21.45
HK$30.67
+43.0%
12.3%HK$37.65HK$25.50HK$24.9015
Sep ’24HK$21.80
HK$30.82
+41.4%
12.8%HK$37.65HK$24.00HK$24.6015
Aug ’24HK$23.50
HK$31.32
+33.3%
12.3%HK$37.65HK$25.00HK$22.5015
Jul ’24HK$23.95
HK$32.23
+34.6%
11.4%HK$37.65HK$26.00HK$24.0514
Jun ’24HK$23.05
HK$32.20
+39.7%
11.4%HK$37.65HK$26.00HK$24.5014
May ’24HK$24.70
HK$32.35
+31.0%
10.7%HK$37.65HK$26.00HK$24.1514
Apr ’24HK$24.45
HK$33.13
+35.5%
8.1%HK$37.65HK$28.40HK$20.9513
Mar ’24HK$26.80
HK$34.21
+27.7%
7.5%HK$37.65HK$28.40HK$20.4513
Feb ’24HK$27.05
HK$34.19
+26.4%
7.5%HK$37.65HK$28.40HK$18.5613
Jan ’24HK$26.60
HK$35.00
+31.6%
10.6%HK$43.80HK$28.40HK$21.2013
Dec ’23HK$24.65
HK$35.00
+42.0%
10.6%HK$43.80HK$28.40HK$20.7513
Nov ’23HK$24.25
HK$34.99
+44.3%
10.5%HK$43.80HK$28.40HK$20.8513

Analyst Forecast: Target price is less than 20% higher than the current share price.


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