Perennial International Limited

SEHK:725 Stock Report

Market Cap: HK$119.4m

Perennial International Valuation

Is 725 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 725 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 725 (HK$0.6) is trading below our estimate of fair value (HK$1.82)

Significantly Below Fair Value: 725 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 725?

Key metric: As 725 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 725. This is calculated by dividing 725's market cap by their current earnings.
What is 725's PE Ratio?
PE Ratio7x
EarningsHK$17.13m
Market CapHK$119.37m

Price to Earnings Ratio vs Peers

How does 725's PE Ratio compare to its peers?

The above table shows the PE ratio for 725 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.4x
1685 Boer Power Holdings
3.9xn/aHK$120.7m
1399 Veson Holdings
5.4xn/aHK$228.9m
8115 Shanghai Qingpu Fire-Fighting Equipment
24xn/aHK$243.7m
8136 IMS Group Holdings
4.4xn/aHK$41.0m
725 Perennial International
7xn/aHK$119.4m

Price-To-Earnings vs Peers: 725 is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (9.1x).


Price to Earnings Ratio vs Industry

How does 725's PE Ratio compare vs other companies in the Asian Electrical Industry?

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
725 7.0xIndustry Avg. 27.9xNo. of Companies66PE020406080100+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 725 is good value based on its Price-To-Earnings Ratio (7x) compared to the Asian Electrical industry average (27.9x).


Price to Earnings Ratio vs Fair Ratio

What is 725'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.

725 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 725'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.


Discover undervalued companies