Eternity Investment Valuation

Q: What is the Fair Price of 764 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

764 (HK$0.07) is trading below our estimate of [[fair value]] (HK$2.17)

Is 764 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-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 764 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 764 (HK$0.07) is trading below our estimate of fair value (HK$2.17)

Significantly Below Fair Value: 764 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 764?

Key metric: As 764 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 764. This is calculated by dividing 764's market cap by their current revenue.
What is 764's PS Ratio?
PS Ratio	46.3x
Sales	HK$6.11m
Market Cap	HK$290.29m

764 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 764's PS Ratio compare to its peers?

The above table shows the PS ratio for 764 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2x
1520 Virtual Mind Holding	5.7x	n/a	HK$366.3m
6838 Winox Holdings	0.3x	n/a	HK$240.0m
213 National Electronics Holdings	0.8x	n/a	HK$457.9m
1146 Huicheng International Holdings	1.1x	n/a	HK$217.1m
764 Eternity Investment	46.3x	n/a	HK$282.7m

Price-To-Sales vs Peers: 764 is expensive based on its Price-To-Sales Ratio (46.3x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does 764's PS Ratio compare vs other companies in the HK Luxury Industry?

22 Companies	Price / Sales	Estimated Growth	Market Cap
116 Chow Sang Sang Holdings International	0.2x	2.4%	US$548.44m
2678 Texhong International Group	0.1x	6.2%	US$453.06m
321 Texwinca Holdings	0.2x	n/a	US$145.62m
420 Fountain Set (Holdings)	0.2x	n/a	US$99.19m

22 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 764 is expensive based on its Price-To-Sales Ratio (46.3x) compared to the Hong Kong Luxury industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 764'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.

764 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	46.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 764'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.