Gala Technology Holding Valuation

Q: What is the Fair Price of 2458 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2458 (HK$4.02) is trading below our estimate of [[fair value]] (HK$12.56)

Is 2458 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 2458 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2458 (HK$4.02) is trading below our estimate of fair value (HK$12.56)

Significantly Below Fair Value: 2458 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2458?

Key metric: As 2458 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2458. This is calculated by dividing 2458's market cap by their current earnings.
What is 2458's PE Ratio?
PE Ratio	8.5x
Earnings	CN¥60.44m
Market Cap	CN¥515.06m

2458 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	0.3x
Enterprise Value/EBITDA	2.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2458's PE Ratio compare to its peers?

The above table shows the PE ratio for 2458 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	16.3x
1022 Feiyu Technology International	34.2x	n/a	HK$374.4m
434 Boyaa Interactive International	4.9x	n/a	HK$1.8b
6860 FingerTango	5.2x	n/a	HK$205.2m
3798 Homeland Interactive Technology	21x	n/a	HK$1.6b
2458 Gala Technology Holding	8.5x	n/a	HK$554.8m

Price-To-Earnings vs Peers: 2458 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does 2458's PE Ratio compare vs other companies in the HK Entertainment Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2458 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Asian Entertainment industry average (27.2x).

Price to Earnings Ratio vs Fair Ratio

What is 2458'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.

2458 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2458'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.

Discover undervalued companies

Tencent Holdings

HK$3.7t

An investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally.

700

HK$401.00

-4.7%

27.2%

Xinhua Winshare Publishing and Media

HK$16.9b

Xinhua Winshare Publishing and Media Co., Ltd.

811

HK$9.68

2.7%

43.2%