SJM Holdings Valuation

Is 880 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-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 880 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 880 (HK$2.58) is trading below our estimate of fair value (HK$7.32)

Significantly Below Fair Value: 880 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 880?

Key metric: As 880 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 880. This is calculated by dividing 880's market cap by their current revenue.
What is 880's PS Ratio?
PS Ratio	0.7x
Sales	HK$26.06b
Market Cap	HK$18.32b

880 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	1.7x
Enterprise Value/EBITDA	15.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 880's PS Ratio compare to its peers?

The above table shows the PS ratio for 880 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	1.4x
1128 Wynn Macau	1x	5.9%	HK$29.1b
2282 MGM China Holdings	1.2x	3.2%	HK$35.4b
3918 NagaCorp	3.2x	10.5%	HK$13.3b
200 Melco International Development	0.2x	7.1%	HK$6.9b
880 SJM Holdings	0.7x	8.4%	HK$18.3b

Price-To-Sales vs Peers: 880 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

How does 880's PS Ratio compare vs other companies in the HK Hospitality Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
1443 Fulum Group Holdings	0.1x	n/a	US$22.72m
1901 Feiyang International Holdings Group	0.1x	n/a	US$7.38m
3666 Shanghai XNG Holdings	0.1x	n/a	US$6.81m
8069 Flydoo Technology Holding	0.07x	n/a	US$3.59m

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 880 is good value based on its Price-To-Sales Ratio (0.7x) compared to the Hong Kong Hospitality industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 880'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.

880 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	1.8x

Price-To-Sales vs Fair Ratio: 880 is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 880 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$2.58	HK$3.45 +33.9%	33.1%	HK$7.15	HK$2.25	n/a	17
Nov ’25	HK$2.69	HK$3.55 +32.0%	33.0%	HK$7.15	HK$2.25	n/a	15
Oct ’25	HK$3.09	HK$3.17 +2.5%	38.8%	HK$7.15	HK$2.20	n/a	15
Sep ’25	HK$2.38	HK$3.29 +38.0%	36.3%	HK$7.15	HK$2.20	n/a	15
Aug ’25	HK$2.49	HK$3.49 +40.0%	33.3%	HK$7.15	HK$2.25	n/a	16
Jul ’25	HK$2.65	HK$3.59 +35.3%	30.5%	HK$7.15	HK$2.25	n/a	16
Jun ’25	HK$2.85	HK$3.51 +23.0%	31.8%	HK$7.15	HK$2.25	n/a	16
May ’25	HK$2.89	HK$3.35 +16.0%	34.6%	HK$7.15	HK$2.15	n/a	16
Apr ’25	HK$2.39	HK$3.37 +40.8%	37.2%	HK$7.15	HK$2.10	n/a	16
Mar ’25	HK$2.37	HK$3.48 +46.9%	38.7%	HK$7.15	HK$1.90	n/a	16
Feb ’25	HK$2.26	HK$3.50 +54.9%	38.2%	HK$7.15	HK$1.90	n/a	16
Jan ’25	HK$2.47	HK$3.67 +48.7%	32.5%	HK$7.15	HK$2.30	n/a	18
Dec ’24	HK$2.29	HK$3.96 +73.1%	32.8%	HK$7.15	HK$2.40	n/a	17
Nov ’24	HK$2.68	HK$4.31 +60.9%	27.9%	HK$7.15	HK$3.00	HK$2.69	15
Oct ’24	HK$3.08	HK$4.26 +38.5%	28.3%	HK$7.15	HK$2.75	HK$3.09	16
Sep ’24	HK$3.16	HK$4.37 +38.4%	26.1%	HK$7.15	HK$2.75	HK$2.38	17
Aug ’24	HK$3.62	HK$4.46 +23.2%	26.1%	HK$7.15	HK$2.75	HK$2.49	17
Jul ’24	HK$3.34	HK$4.69 +40.4%	23.7%	HK$7.15	HK$2.75	HK$2.65	15
Jun ’24	HK$3.09	HK$4.60 +48.9%	23.5%	HK$7.15	HK$2.75	HK$2.85	16
May ’24	HK$4.06	HK$4.69 +15.5%	22.9%	HK$7.15	HK$2.75	HK$2.89	15
Apr ’24	HK$3.92	HK$4.78 +22.0%	22.9%	HK$7.15	HK$2.75	HK$2.39	15
Mar ’24	HK$4.17	HK$4.84 +16.0%	24.8%	HK$7.15	HK$2.75	HK$2.37	17
Feb ’24	HK$4.51	HK$4.84 +7.3%	24.7%	HK$7.15	HK$2.75	HK$2.26	17
Jan ’24	HK$4.52	HK$4.23 -6.5%	29.4%	HK$7.15	HK$2.75	HK$2.47	17
Dec ’23	HK$3.80	HK$4.05 +6.6%	31.7%	HK$7.15	HK$2.75	HK$2.29	17
Nov ’23	HK$2.64	HK$3.95 +49.6%	33.9%	HK$7.15	HK$2.50	HK$2.68	17

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.