Sands China Valuation

Is 1928 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1928 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1928 (HK$20.2) is trading below our estimate of fair value (HK$40.33)

Significantly Below Fair Value: 1928 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1928?

Key metric: As 1928 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1928. This is calculated by dividing 1928's market cap by their current earnings.
What is 1928's PE Ratio?
PE Ratio19.9x
EarningsUS$1.06b
Market CapUS$21.01b

Price to Earnings Ratio vs Peers

How does 1928's PE Ratio compare to its peers?

The above table shows the PE ratio for 1928 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.2x
27 Galaxy Entertainment Group
18.6x15.6%HK$154.9b
2282 MGM China Holdings
8.3x5.8%HK$37.3b
1128 Wynn Macau
11.4x13.0%HK$30.5b
3918 NagaCorp
18.5x42.4%HK$13.5b
1928 Sands China
19.9x19.2%HK$163.5b

Price-To-Earnings vs Peers: 1928 is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (14.2x).


Price to Earnings Ratio vs Industry

How does 1928'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$9.41m
8052 Luk Hing Entertainment Group Holdings
1.3xn/aUS$2.68m
8475 E-Station Green Technology Group
0.4xn/aUS$2.28m
1928 19.9xIndustry Avg. 16.9xNo. of Companies6PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1928 is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the Hong Kong Hospitality industry average (16.9x).


Price to Earnings Ratio vs Fair Ratio

What is 1928'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.

1928 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.9x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: 1928 is expensive based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).


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 1928 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$20.20
HK$26.16
+29.5%
12.2%HK$36.45HK$20.92n/a20
Dec ’25HK$19.84
HK$26.16
+31.9%
12.2%HK$36.45HK$20.92n/a20
Nov ’25HK$20.90
HK$26.18
+25.3%
14.9%HK$36.71HK$20.89n/a20
Oct ’25HK$19.92
HK$24.49
+22.9%
24.3%HK$42.73HK$17.66n/a20
Sep ’25HK$14.24
HK$24.54
+72.3%
24.5%HK$42.86HK$17.71n/a20
Aug ’25HK$14.94
HK$24.76
+65.8%
23.9%HK$42.96HK$18.00n/a20
Jul ’25HK$16.28
HK$29.21
+79.4%
17.2%HK$42.95HK$20.94n/a19
Jun ’25HK$18.64
HK$29.48
+58.1%
16.5%HK$42.96HK$20.95n/a19
May ’25HK$18.68
HK$29.56
+58.3%
16.3%HK$43.01HK$20.97n/a19
Apr ’25HK$22.05
HK$32.05
+45.3%
14.7%HK$43.02HK$23.54n/a19
Mar ’25HK$22.05
HK$32.03
+45.3%
15.0%HK$43.04HK$23.55n/a19
Feb ’25HK$21.35
HK$32.03
+50.0%
13.7%HK$38.03HK$23.52n/a20
Jan ’25HK$22.85
HK$33.59
+47.0%
15.8%HK$41.78HK$24.91n/a19
Dec ’24HK$19.60
HK$34.49
+76.0%
14.1%HK$41.75HK$24.92HK$19.8418
Nov ’24HK$20.65
HK$35.70
+72.9%
12.2%HK$41.89HK$25.00HK$20.9018
Oct ’24HK$24.00
HK$35.45
+47.7%
12.9%HK$43.90HK$25.01HK$19.9217
Sep ’24HK$26.55
HK$36.37
+37.0%
13.0%HK$43.90HK$25.09HK$14.2418
Aug ’24HK$29.65
HK$36.09
+21.7%
12.7%HK$42.92HK$24.92HK$14.9418
Jul ’24HK$26.70
HK$35.12
+31.5%
12.4%HK$43.05HK$24.96HK$16.2817
Jun ’24HK$24.80
HK$34.58
+39.4%
10.9%HK$39.93HK$24.95HK$18.6418
May ’24HK$27.85
HK$34.25
+23.0%
11.0%HK$40.00HK$25.00HK$18.6818
Apr ’24HK$27.30
HK$33.58
+23.0%
11.5%HK$40.01HK$24.56HK$22.0518
Mar ’24HK$28.55
HK$33.57
+17.6%
11.4%HK$40.08HK$24.56HK$22.0518
Feb ’24HK$29.95
HK$29.91
-0.1%
21.8%HK$36.05HK$13.98HK$21.3517
Jan ’24HK$25.90
HK$23.28
-10.1%
20.1%HK$32.04HK$13.90HK$22.8517
Dec ’23HK$21.45
HK$22.20
+3.5%
16.5%HK$25.81HK$13.87HK$19.6018

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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