Sun Hung Kai Valuation

Is 86 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: Insufficient data to calculate 86's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 86's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 86?

Key metric: As 86 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 86. This is calculated by dividing 86's market cap by their current revenue.
What is 86's PS Ratio?
PS Ratio	2.6x
Sales	HK$2.02b
Market Cap	HK$5.31b

86 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 86's PS Ratio compare to its peers?

The above table shows the PS ratio for 86 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	7.7x
373 Allied Group	0.8x	n/a	HK$5.0b
335 Upbest Group	27.3x	n/a	HK$2.2b
2858 Yixin Group	0.6x	17.9%	HK$4.3b
900 AEON Credit Service (Asia)	2.1x	15.4%	HK$2.4b
86 Sun Hung Kai	2.6x	16.1%	HK$5.3b

Price-To-Sales vs Peers: 86 is good value based on its Price-To-Sales Ratio (2.6x) compared to the peer average (7.7x).

Price to Sales Ratio vs Industry

How does 86's PS Ratio compare vs other companies in the HK Consumer Finance Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
8325 China Smartpay Group Holdings	0.2x	n/a	US$10.90m
6878 Differ Group Auto	0.05x	n/a	US$8.33m
1225 Lerado Financial Group	0.2x	n/a	US$4.65m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 86 is expensive based on its Price-To-Sales Ratio (2.6x) compared to the Hong Kong Consumer Finance industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is 86'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.

86 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.6x
Fair PS Ratio	2.7x

Price-To-Sales vs Fair Ratio: 86 is good value based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).

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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