Paradise Entertainment Valuation

Is 1180 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 1180 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1180 (HK$0.98) is trading below our estimate of fair value (HK$3.67)

Significantly Below Fair Value: 1180 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1180?

Key metric: As 1180 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1180. This is calculated by dividing 1180's market cap by their current earnings.
What is 1180's PE Ratio?
PE Ratio	5.7x
Earnings	HK$181.22m
Market Cap	HK$1.03b

1180 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	1.4x
Enterprise Value/EBITDA	5.2x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 1180's PE Ratio compare to its peers?

The above table shows the PE ratio for 1180 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	18.5x
1680 Macau Legend Development	37.5x	n/a	HK$874.4m
6889 DYNAM JAPAN HOLDINGS	11.9x	n/a	HK$2.2b
1245 Niraku GC Holdings	6.7x	n/a	HK$266.7m
3918 NagaCorp	18x	42.4%	HK$13.1b
1180 Paradise Entertainment	5.7x	14.4%	HK$1.0b

Price-To-Earnings vs Peers: 1180 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (18.5x).

Price to Earnings Ratio vs Industry

How does 1180's PE Ratio compare vs other companies in the HK Hospitality Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap
1383 LET Group Holdings	1.3x	n/a	US$38.09m
1655 Okura Holdings	0.7x	n/a	US$9.18m
8052 Luk Hing Entertainment Group Holdings	1.3x	n/a	US$2.61m
8475 E-Station Green Technology Group	0.5x	n/a	US$2.37m

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 1180 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the Hong Kong Hospitality industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is 1180'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.

1180 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.7x
Fair PE Ratio	8.9x

Price-To-Earnings vs Fair Ratio: 1180 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).

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.