Build King Holdings Limited

SEHK:240 Stock Report

Market Cap: HK$1.2b

Build King Holdings Valuation

Is 240 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 240 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 240 (HK$0.95) is trading below our estimate of fair value (HK$1.75)

Significantly Below Fair Value: 240 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 240?

Key metric: As 240 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 240. This is calculated by dividing 240's market cap by their current earnings.
What is 240's PE Ratio?
PE Ratio3.2x
EarningsHK$371.46m
Market CapHK$1.18b

Price to Earnings Ratio vs Peers

How does 240's PE Ratio compare to its peers?

The above table shows the PE ratio for 240 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.4x
1977 Analogue Holdings
13.4xn/aHK$1.3b
1627 Able Engineering Holdings
4.5xn/aHK$920.0m
2535 WK Group (Holdings)
40.9xn/aHK$1.2b
1662 Yee Hop Holdings
50.7xn/aHK$1.1b
240 Build King Holdings
3.2xn/aHK$1.2b

Price-To-Earnings vs Peers: 240 is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (27.4x).

Price to Earnings Ratio vs Industry

How does 240's PE Ratio compare vs other companies in the HK Construction Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8188 GME Group Holdings
1.5xn/aUS$21.45m
1591 Shun Wo Group Holdings
1.9xn/aUS$9.66m
8373 Indigo Star Holdings
1.6xn/aUS$3.34m
No more companies available in this PE range
240 3.2xIndustry Avg. 10.3xNo. of Companies13PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 240 is good value based on its Price-To-Earnings Ratio (3.2x) compared to the Hong Kong Construction industry average (10.6x).

Price to Earnings Ratio vs Fair Ratio

What is 240'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.

240 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 240's Price-To-Earnings Fair Ratio for valuation analysis.

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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