Langham Hospitality Investments Limited

SEHK:1270 Stock Report

Market Cap: HK$1.7b

Langham Hospitality Investments Valuation

Is 1270 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1270 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1270 (HK$0.5) is trading below our estimate of fair value (HK$0.58)

Significantly Below Fair Value: 1270 is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1270?

Key metric: As 1270 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1270. This is calculated by dividing 1270's market cap by their current earnings.
What is 1270's PE Ratio?
PE Ratio3.5x
EarningsHK$492.37m
Market CapHK$1.72b

Price to Earnings Ratio vs Peers

How does 1270's PE Ratio compare to its peers?

The above table shows the PE ratio for 1270 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.3x
3658 New Hope Service Holdings
6.3x11.1%HK$1.5b
816 Jinmao Property Services
6.4x11.4%HK$2.5b
6989 Excellence Commercial Property & Facilities Management Group
4.8xn/aHK$1.6b
9909 Powerlong Commercial Management Holdings
3.6x5.4%HK$1.5b
1270 Langham Hospitality Investments
3.5x-117.5%HK$1.7b

Price-To-Earnings vs Peers: 1270 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (5.3x).


Price to Earnings Ratio vs Industry

How does 1270's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$226.00m
3883 China Aoyuan Group
0.07xn/aUS$158.42m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
1270 3.5xIndustry Avg. 7.2xNo. of Companies16PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1270 is good value based on its Price-To-Earnings Ratio (3.5x) compared to the Hong Kong Real Estate industry average (7.2x).


Price to Earnings Ratio vs Fair Ratio

What is 1270'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.

1270 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.5x
Fair PE Ratio1.1x

Price-To-Earnings vs Fair Ratio: 1270 is expensive based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (1.1x).


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