Regal Hotels International Holdings Valuation

Is 78 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-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 78 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 78 (HK$2.51) is trading below our estimate of fair value (HK$7.48)

Significantly Below Fair Value: 78 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 78?

Key metric: As 78 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 78. This is calculated by dividing 78's market cap by their current revenue.
What is 78's PS Ratio?
PS Ratio	1.4x
Sales	HK$1.59b
Market Cap	HK$2.26b

78 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	11x
Enterprise Value/EBITDA	-156.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 78's PS Ratio compare to its peers?

The above table shows the PS ratio for 78 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	3.5x
1221 Sino Hotels (Holdings)	12.1x	n/a	HK$1.6b
1992 Fosun Tourism Group	0.2x	7.2%	HK$4.2b
308 China Travel International Investment Hong Kong	1.1x	8.5%	HK$5.3b
132 Hing Yip Holdings	0.7x	n/a	HK$616.4m
78 Regal Hotels International Holdings	1.4x	n/a	HK$2.3b

Price-To-Sales vs Peers: 78 is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does 78's PS Ratio compare vs other companies in the HK Hospitality Industry?

15 Companies	Price / Sales	Estimated Growth	Market Cap
520 Xiabuxiabu Catering Management (China) Holdings	0.2x	9.7%	US$118.22m
6811 Tai Hing Group Holdings	0.2x	4.9%	US$82.66m
573 Tao Heung Holdings	0.2x	n/a	US$56.68m
6882 EGL Holdings	0.2x	n/a	US$39.37m

15 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 78 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the Hong Kong Hospitality industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 78'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.

78 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 78'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.