Hang Lung Group Valuation

Is 10 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 10 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 10 (HK$10.52) is trading below our estimate of fair value (HK$22.46)

Significantly Below Fair Value: 10 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 10?

Key metric: As 10 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 10. This is calculated by dividing 10's market cap by their current earnings.
What is 10's PE Ratio?
PE Ratio7.1x
EarningsHK$2.02b
Market CapHK$14.32b

Price to Earnings Ratio vs Peers

How does 10's PE Ratio compare to its peers?

The above table shows the PE ratio for 10 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
2869 Greentown Service Group
15.9x13.8%HK$11.5b
6049 Poly Property Services
11.3x10.3%HK$17.7b
6666 Evergrande Property Services Group
6.3xn/aHK$8.5b
2602 Onewo
13.4x13.6%HK$24.8b
10 Hang Lung Group
7.1xn/aHK$14.3b

Price-To-Earnings vs Peers: 10 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does 10's PE Ratio compare vs other companies in the HK Real Estate Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$237.67m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
3883 China Aoyuan Group
0.06xn/aUS$126.30m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
10 7.1xIndustry Avg. 7.1xNo. of Companies15PE0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 10 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Hong Kong Real Estate industry average (7.1x).


Price to Earnings Ratio vs Fair Ratio

What is 10'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.

10 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 10'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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