Lam Soon (Hong Kong) Valuation

Is 411 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: 411 (HK$8.34) is trading below our estimate of fair value (HK$17.33)

Significantly Below Fair Value: 411 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 411?

Key metric: As 411 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 411. This is calculated by dividing 411's market cap by their current earnings.
What is 411's PE Ratio?
PE Ratio	9.8x
Earnings	HK$200.60m
Market Cap	HK$1.96b

411 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	0.05x
Enterprise Value/EBITDA	1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 411's PE Ratio compare to its peers?

The above table shows the PE ratio for 411 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	34.4x
6836 Tianyun International Holdings	15.8x	n/a	HK$3.2b
1717 Ausnutria Dairy	24.1x	38.1%	HK$3.6b
374 Four Seas Mercantile Holdings	27.7x	n/a	HK$960.5m
1458 Zhou Hei Ya International Holdings	69.9x	53.3%	HK$3.6b
411 Lam Soon (Hong Kong)	9.8x	n/a	HK$2.0b

Price-To-Earnings vs Peers: 411 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (34.8x).

Price to Earnings Ratio vs Industry

How does 411's PE Ratio compare vs other companies in the HK Food Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
809 Global Bio-chem Technology Group	0.2x	n/a	US$93.78m
3889 Global Sweeteners Holdings	2.4x	n/a	US$28.18m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 411 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the Hong Kong Food industry average (14x).

Price to Earnings Ratio vs Fair Ratio

What is 411'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.

411 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 411's Price-To-Earnings 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.

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