NWS Holdings Limited

SEHK:659 Stock Report

Market Cap: HK$32.4b

NWS Holdings Valuation

Is 659 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 659 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 659 (HK$8.1) is trading below our estimate of fair value (HK$76.23)

Significantly Below Fair Value: 659 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 659?

Key metric: As 659 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 659. This is calculated by dividing 659's market cap by their current earnings.
What is 659's PE Ratio?
PE Ratio14.8x
EarningsHK$2.19b
Market CapHK$32.38b

Price to Earnings Ratio vs Peers

How does 659's PE Ratio compare to its peers?

The above table shows the PE ratio for 659 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.2x
656 Fosun International
43.2x53.5%HK$34.3b
53 Guoco Group
6.5xn/aHK$23.2b
19 Swire Pacific
3.1x-17.0%HK$81.3b
363 Shanghai Industrial Holdings
3.8xn/aHK$12.4b
659 NWS Holdings
14.8x13.9%HK$32.4b

Price-To-Earnings vs Peers: 659 is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (14.2x).

Price to Earnings Ratio vs Industry

How does 659's PE Ratio compare vs other companies in the Asian Industrials Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
659 14.8xIndustry Avg. 12.3xNo. of Companies19PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 659 is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the Asian Industrials industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is 659'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.

659 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.8x
Fair PE Ratio8.1x

Price-To-Earnings vs Fair Ratio: 659 is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (8.1x).

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 659 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$8.10
HK$9.50
+17.3%
11.2%HK$11.00HK$8.60n/a3
Nov ’25HK$8.07
HK$8.75
+8.4%
1.7%HK$8.90HK$8.60n/a2
Oct ’25HK$8.02
HK$8.75
+9.1%
1.7%HK$8.90HK$8.60n/a2
Sep ’25HK$7.09
HK$8.70
+22.7%
2.3%HK$8.90HK$8.50n/a2
Aug ’25HK$6.93
HK$8.70
+25.5%
2.3%HK$8.90HK$8.50n/a2
Jul ’25HK$6.93
HK$8.45
+21.9%
5.3%HK$8.90HK$8.00n/a2
Jun ’25HK$6.67
HK$8.45
+26.7%
5.3%HK$8.90HK$8.00n/a2
May ’25HK$6.62
HK$8.45
+27.6%
5.3%HK$8.90HK$8.00n/a2
Apr ’25HK$6.50
HK$8.45
+30.0%
5.3%HK$8.90HK$8.00n/a2
Jun ’24HK$6.64
HK$8.60
+29.5%
3.5%HK$8.90HK$8.30HK$6.672
May ’24HK$6.79
HK$9.20
+35.5%
9.6%HK$10.40HK$8.30HK$6.623
Apr ’24HK$7.03
HK$9.20
+30.9%
9.6%HK$10.40HK$8.30HK$6.503
Mar ’24HK$7.03
HK$9.20
+30.9%
9.6%HK$10.40HK$8.30HK$9.043
Feb ’24HK$7.56
HK$9.75
+29.0%
6.7%HK$10.40HK$9.10HK$6.952
Jan ’24HK$6.75
HK$9.75
+44.4%
6.7%HK$10.40HK$9.10HK$7.362
Dec ’23HK$6.33
HK$9.75
+54.0%
6.7%HK$10.40HK$9.10HK$7.162
Nov ’23HK$5.70
HK$9.75
+71.1%
6.7%HK$10.40HK$9.10HK$9.322

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

Discover undervalued companies

Greentown Management Holdings

HK$5.9b

An investment holding company, provides project management services in the People’s Republic of China.

9979

HK$2.94

7D

-5.5%

1Y

-51.6%

Zhengzhou Coal Mining Machinery Group

CN¥21.4b

Manufactures and sells coal mining and excavating equipment in the People’s Republic of China, Germany, and internationally.

564

CN¥9.63

7D

-3.4%

1Y

28.2%

Shanghai Electric Group

HK$143.0b

Provides industrial-grade eco-friendly smart system solutions in Mainland China and internationally.

2727

HK$3.11

7D

3.0%

1Y

77.7%