Mobvista Valuation

Q: What is the Fair Price of 1860 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1860 (HK$7.74) is trading below our estimate of [[fair value]] (HK$15.56)

Is 1860 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-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 1860 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1860 (HK$7.74) is trading below our estimate of fair value (HK$15.56)

Significantly Below Fair Value: 1860 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1860?

Key metric: As 1860 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1860. This is calculated by dividing 1860's market cap by their current earnings.
What is 1860's PE Ratio?
PE Ratio	55.6x
Earnings	US$27.03m
Market Cap	US$1.50b

1860 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	1.2x
Enterprise Value/EBITDA	40.3x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 1860's PE Ratio compare to its peers?

The above table shows the PE ratio for 1860 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	17.6x
752 Pico Far East Holdings	6.8x	n/a	HK$2.2b
2405 Powerwin Tech Group	46.2x	n/a	HK$1.9b
2540 Lesi Group	11.6x	n/a	HK$860.0m
9919 Activation Group Holdings	5.8x	n/a	HK$647.9m
1860 Mobvista	55.6x	67.0%	HK$11.7b

Price-To-Earnings vs Peers: 1860 is expensive based on its Price-To-Earnings Ratio (55.6x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does 1860's PE Ratio compare vs other companies in the HK Media 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: 1860 is expensive based on its Price-To-Earnings Ratio (55.6x) compared to the Hong Kong Media industry average (10.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1860'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.

1860 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	55.6x
Fair PE Ratio	33.4x

Price-To-Earnings vs Fair Ratio: 1860 is expensive based on its Price-To-Earnings Ratio (55.6x) compared to the estimated Fair Price-To-Earnings Ratio (33.4x).

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 1860 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$7.74	HK$5.74 -25.8%	4.2%	HK$5.99	HK$5.50	n/a	2
Nov ’25	HK$1.90	HK$3.83 +101.8%	55.8%	HK$5.98	HK$1.69	n/a	2
Oct ’25	HK$2.12	HK$4.56 +115.3%	44.4%	HK$6.00	HK$1.70	n/a	3
Sep ’25	HK$1.36	HK$4.56 +235.6%	44.4%	HK$6.00	HK$1.70	n/a	3
Aug ’25	HK$1.86	HK$5.50 +195.6%	13.0%	HK$6.00	HK$4.49	n/a	3
Jul ’25	HK$2.52	HK$5.50 +118.2%	13.0%	HK$6.00	HK$4.49	n/a	3
Jun ’25	HK$2.93	HK$5.16 +76.1%	12.2%	HK$6.00	HK$4.48	n/a	3
May ’25	HK$2.70	HK$5.17 +91.5%	12.0%	HK$6.00	HK$4.50	n/a	3
Apr ’25	HK$3.09	HK$5.17 +67.3%	12.0%	HK$6.00	HK$4.50	n/a	3
Mar ’25	HK$3.28	HK$5.52 +68.4%	7.4%	HK$6.00	HK$5.00	n/a	3
Feb ’25	HK$2.85	HK$5.52 +93.8%	7.4%	HK$6.00	HK$5.00	n/a	3
Jan ’25	HK$2.90	HK$5.52 +90.5%	7.4%	HK$6.00	HK$5.00	n/a	3
Dec ’24	HK$2.94	HK$5.52 +87.9%	7.4%	HK$6.00	HK$5.00	n/a	3
Nov ’24	HK$3.14	HK$5.97 +90.1%	4.8%	HK$6.31	HK$5.60	HK$1.90	3
Oct ’24	HK$3.15	HK$5.97 +89.5%	4.8%	HK$6.31	HK$5.60	HK$2.12	3
Sep ’24	HK$3.58	HK$5.97 +66.7%	4.8%	HK$6.31	HK$5.60	HK$1.36	3
Aug ’24	HK$3.85	HK$5.95 +54.7%	4.8%	HK$6.30	HK$5.60	HK$1.86	3
Jul ’24	HK$3.44	HK$5.96 +73.2%	4.7%	HK$6.28	HK$5.60	HK$2.52	3
Jun ’24	HK$3.61	HK$5.96 +65.0%	4.7%	HK$6.28	HK$5.60	HK$2.93	3
May ’24	HK$3.90	HK$5.97 +53.0%	4.8%	HK$6.30	HK$5.60	HK$2.70	3
Apr ’24	HK$4.17	HK$5.95 +42.6%	5.9%	HK$6.30	HK$5.59	HK$3.09	2
Mar ’24	HK$4.15	HK$5.95 +43.3%	5.9%	HK$6.30	HK$5.59	HK$3.28	2

Analyst Forecast: Target price is lower than the current share price.

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