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 Ratio	7.1x
Earnings	HK$2.02b
Market Cap	HK$14.32b

10 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	10x
Enterprise Value/EBITDA	17.1x
PEG Ratio	n/a

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.7x
2869 Greentown Service Group	15.9x	13.8%	HK$11.5b
6049 Poly Property Services	11.3x	10.3%	HK$17.7b
6666 Evergrande Property Services Group	6.3x	n/a	HK$8.5b
2602 Onewo	13.4x	13.6%	HK$24.8b
10 Hang Lung Group	7.1x	n/a	HK$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 Companies	Price / Earnings	Estimated Growth	Market Cap
29 Dynamic Holdings	0.3x	n/a	US$237.67m
2768 Jiayuan International Group	1.4x	31.6%	US$151.18m
3883 China Aoyuan Group	0.06x	n/a	US$126.30m
2117 Datang Group Holdings	1.2x	n/a	US$87.18m

7 Companies		Estimated Growth	Market 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 Ratio	7.1x
Fair PE Ratio	n/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.