Stella International Holdings Valuation

Q: What is the Fair Price of 1836 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1836 (HK$13.68) is trading above our estimate of [[fair value]] (HK$11.64)

Is 1836 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 1836 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1836 (HK$13.68) is trading above our estimate of fair value (HK$11.64)

Significantly Below Fair Value: 1836 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1836?

Key metric: As 1836 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1836. This is calculated by dividing 1836's market cap by their current earnings.
What is 1836's PE Ratio?
PE Ratio	8.1x
Earnings	US$177.30m
Market Cap	US$1.44b

1836 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	0.7x
Enterprise Value/EBITDA	4.7x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 1836's PE Ratio compare to its peers?

The above table shows the PE ratio for 1836 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	13.3x
1368 Xtep International Holdings	10.9x	13.4%	HK$13.1b
551 Yue Yuen Industrial (Holdings)	7.4x	4.0%	HK$26.6b
1028 C.banner International Holdings	14x	n/a	HK$471.5m
1170 Kingmaker Footwear Holdings	20.9x	n/a	HK$423.2m
1836 Stella International Holdings	8.1x	6.7%	HK$11.2b

Price-To-Earnings vs Peers: 1836 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (13.7x).

Price to Earnings Ratio vs Industry

How does 1836'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$5.46m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 1836 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Hong Kong Luxury industry average (8.8x).

Price to Earnings Ratio vs Fair Ratio

What is 1836'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.

1836 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1836'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?

The above table shows the analyst 1836 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$13.68	HK$16.93 +23.8%	16.1%	HK$19.57	HK$11.00	n/a	8
Nov ’25	HK$14.36	HK$16.91 +17.7%	16.1%	HK$19.54	HK$11.00	n/a	8
Oct ’25	HK$14.68	HK$16.56 +12.8%	17.2%	HK$19.54	HK$11.00	n/a	7
Sep ’25	n/a	HK$16.62 0%	17.3%	HK$19.62	HK$11.01	n/a	7
Aug ’25	n/a	HK$16.46 0%	16.5%	HK$19.61	HK$11.40	n/a	7
Jul ’25	n/a	HK$16.90 0%	12.3%	HK$19.60	HK$13.27	n/a	7
Jun ’25	n/a	HK$16.67 0%	11.0%	HK$19.45	HK$13.28	n/a	7
May ’25	n/a	HK$16.71 0%	11.1%	HK$19.50	HK$13.31	n/a	7
Apr ’25	n/a	HK$15.34 0%	10.9%	HK$18.01	HK$13.30	n/a	7
Mar ’25	n/a	HK$13.05 0%	8.8%	HK$14.40	HK$11.71	n/a	6
Feb ’25	n/a	HK$13.03 0%	8.8%	HK$14.39	HK$11.69	n/a	6
Jan ’25	n/a	HK$11.93 0%	10.9%	HK$14.09	HK$9.97	n/a	6
Dec ’24	n/a	HK$11.91 0%	10.8%	HK$14.04	HK$9.96	n/a	6
Nov ’24	n/a	HK$11.62 0%	13.1%	HK$14.09	HK$9.79	HK$14.36	6
Oct ’24	n/a	HK$11.74 0%	11.5%	HK$14.09	HK$9.79	HK$14.68	6
Sep ’24	n/a	HK$11.76 0%	11.5%	HK$14.11	HK$9.80	n/a	6
Aug ’24	n/a	HK$11.79 0%	7.0%	HK$13.34	HK$11.00	n/a	7
Jul ’24	n/a	HK$11.60 0%	4.6%	HK$12.57	HK$10.97	n/a	7
Jun ’24	n/a	HK$11.60 0%	4.6%	HK$12.57	HK$10.98	n/a	7
May ’24	n/a	HK$11.62 0%	4.6%	HK$12.59	HK$10.99	n/a	7
Apr ’24	n/a	HK$11.61 0%	4.6%	HK$12.59	HK$10.99	n/a	7
Mar ’24	n/a	HK$12.67 0%	14.9%	HK$16.28	HK$10.59	n/a	7
Feb ’24	n/a	HK$12.50 0%	15.9%	HK$16.20	HK$10.20	n/a	7
Jan ’24	n/a	HK$12.47 0%	15.8%	HK$16.06	HK$10.16	n/a	7
Dec ’23	n/a	HK$12.52 0%	15.9%	HK$16.14	HK$10.20	n/a	7
Nov ’23	n/a	HK$12.63 0%	15.2%	HK$16.20	HK$10.50	n/a	7

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.