Paradise Entertainment Limited

SEHK:1180 Stock Report

Market Cap: HK$1.0b

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 Ratio5.7x
EarningsHK$181.22m
Market CapHK$1.03b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.5x
1680 Macau Legend Development
37.5xn/aHK$874.4m
6889 DYNAM JAPAN HOLDINGS
11.9xn/aHK$2.2b
1245 Niraku GC Holdings
6.7xn/aHK$266.7m
3918 NagaCorp
18x42.4%HK$13.1b
1180 Paradise Entertainment
5.7x14.4%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 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1383 LET Group Holdings
1.3xn/aUS$38.09m
1655 Okura Holdings
0.7xn/aUS$9.18m
8052 Luk Hing Entertainment Group Holdings
1.3xn/aUS$2.61m
8475 E-Station Green Technology Group
0.5xn/aUS$2.37m
1180 5.7xIndustry Avg. 17.4xNo. of Companies6PE01020304050+
5 CompaniesEstimated GrowthMarket 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 Ratio5.7x
Fair PE Ratio8.9x

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.


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