Prosperous Industrial (Holdings) Valuation

Q: What is the Fair Price of 1731 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1731 (HK$0.81) is trading below our estimate of [[fair value]] (HK$8.05)

Is 1731 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 1731 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1731 (HK$0.81) is trading below our estimate of fair value (HK$8.05)

Significantly Below Fair Value: 1731 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1731?

Key metric: As 1731 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1731. This is calculated by dividing 1731's market cap by their current earnings.
What is 1731's PE Ratio?
PE Ratio	4.9x
Earnings	US$23.87m
Market Cap	US$118.01m

1731 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	2.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1731's PE Ratio compare to its peers?

The above table shows the PE ratio for 1731 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	7.9x
458 Tristate Holdings	4.3x	n/a	HK$684.2m
3389 Hengdeli Holdings	15.5x	n/a	HK$559.3m
837 Carpenter Tan Holdings	7.4x	n/a	HK$1.4b
1425 Justin Allen Holdings	4.4x	n/a	HK$762.5m
1731 Prosperous Industrial (Holdings)	4.9x	n/a	HK$918.4m

Price-To-Earnings vs Peers: 1731 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (7.9x).

Price to Earnings Ratio vs Industry

How does 1731's PE Ratio compare vs other companies in the HK Luxury Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
8211 Zhejiang Yongan Rongtong Holdings	1x	n/a	US$5.74m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 1731 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the Hong Kong Luxury industry average (8.8x).

Price to Earnings Ratio vs Fair Ratio

What is 1731'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.

1731 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1731'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.