Town Health International Medical Group Limited

SEHK:3886 Stock Report

Market Cap: HK$1.6b

Town Health International Medical Group Valuation

Is 3886 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-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 3886 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3886 (HK$0.24) is trading below our estimate of fair value (HK$2.67)

Significantly Below Fair Value: 3886 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3886?

Key metric: As 3886 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3886. This is calculated by dividing 3886's market cap by their current revenue.
What is 3886's PS Ratio?
PS Ratio0.9x
SalesHK$1.83b
Market CapHK$1.65b

Price to Sales Ratio vs Peers

How does 3886's PS Ratio compare to its peers?

The above table shows the PS ratio for 3886 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
1846 EuroEyes International Eye Clinic
1.9x16.2%HK$1.4b
6667 Mega Genomics
10.3xn/aHK$1.8b
6639 Arrail Group
0.7x11.5%HK$1.3b
9960 Kindstar Globalgene Technology
1.1x32.5%HK$1.1b
3886 Town Health International Medical Group
0.9xn/aHK$1.6b

Price-To-Sales vs Peers: 3886 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does 3886's PS Ratio compare vs other companies in the HK Healthcare Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
1099 Sinopharm Group
0.1x5.8%US$8.04b
9885 YSB
0.2xn/aUS$505.51m
2289 Charmacy Pharmaceutical
0.2xn/aUS$128.47m
9955 ClouDr Group
0.2x23.5%US$90.50m
3886 0.9xIndustry Avg. 0.9xNo. of Companies11PS012345+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 3886 is good value based on its Price-To-Sales Ratio (0.9x) compared to the Hong Kong Healthcare industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is 3886'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.

3886 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 3886'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.

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