Royal Deluxe Holdings Limited

SEHK:3789 Stock Report

Market Cap: HK$73.2m

Royal Deluxe Holdings Valuation

Is 3789 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 3789 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3789 (HK$0.06) is trading below our estimate of fair value (HK$1.37)

Significantly Below Fair Value: 3789 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3789?

Key metric: As 3789 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3789. This is calculated by dividing 3789's market cap by their current earnings.
What is 3789's PE Ratio?
PE Ratio7.5x
EarningsHK$9.77m
Market CapHK$73.20m

Price to Earnings Ratio vs Peers

How does 3789's PE Ratio compare to its peers?

The above table shows the PE ratio for 3789 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
1343 Wei Yuan Holdings
41.8xn/aHK$77.7m
6829 Dragon Rise Group Holdings
19.6xn/aHK$82.1m
2433 Zhongtian Construction (Hunan) Group
15.9xn/aHK$83.5m
2515 Tianjin Construction Development Group
2.4xn/aHK$85.2m
3789 Royal Deluxe Holdings
7.5xn/aHK$73.2m

Price-To-Earnings vs Peers: 3789 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (19.9x).

Price to Earnings Ratio vs Industry

How does 3789's PE Ratio compare vs other companies in the HK Construction Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
385 Chinney Alliance Group
1.9xn/aUS$26.75m
8188 GME Group Holdings
1.5xn/aUS$22.35m
1591 Shun Wo Group Holdings
1.8xn/aUS$9.25m
8373 Indigo Star Holdings
1.5xn/aUS$3.24m
No more companies available in this PE range
3789 7.5xIndustry Avg. 9.7xNo. of Companies14PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3789 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the Hong Kong Construction industry average (9.7x).

Price to Earnings Ratio vs Fair Ratio

What is 3789'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.

3789 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 3789'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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