Herald Holdings Limited

SEHK:114 Stock Report

Market Cap: HK$299.2m

Herald Holdings Valuation

Is 114 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 114 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 114 (HK$0.46) is trading below our estimate of fair value (HK$2.11)

Significantly Below Fair Value: 114 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 114?

Key metric: As 114 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 114. This is calculated by dividing 114's market cap by their current revenue.
What is 114's PS Ratio?
PS Ratio0.4x
SalesHK$711.34m
Market CapHK$299.22m

Price to Sales Ratio vs Peers

How does 114's PS Ratio compare to its peers?

The above table shows the PS ratio for 114 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
180 Kader Holdings
0.7xn/aHK$285.2m
361 Sino Golf Holdings
0.9xn/aHK$208.1m
413 South China Holdings
0.1xn/aHK$428.4m
765 Perfectech International Holdings
0.9xn/aHK$137.3m
114 Herald Holdings
0.4xn/aHK$299.2m

Price-To-Sales vs Peers: 114 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.7x).


Price to Sales Ratio vs Industry

How does 114's PS Ratio compare vs other companies in the HK Leisure Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
209 Winshine Science
0.07xn/aUS$4.29m
1237 China Environmental Technology and Bioenergy Holdings
0.08xn/aUS$3.43m
No more companies available in this PS range
114 0.4xIndustry Avg. 0.6xNo. of Companies5PS00.40.81.21.62+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 114 is good value based on its Price-To-Sales Ratio (0.4x) compared to the Hong Kong Leisure industry average (0.6x).


Price to Sales Ratio vs Fair Ratio

What is 114's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

114 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 114's Price-To-Sales 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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