Sun Hung Kai Properties Limited

SEHK:16 Stock Report

Market Cap: HK$197.2b

Sun Hung Kai Properties Valuation

Is 16 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: 16 (HK$70.4) is trading below our estimate of fair value (HK$155.57)

Significantly Below Fair Value: 16 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 16?

Other financial metrics that can be useful for relative valuation.

16 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/Revenue4.6x
Enterprise Value/EBITDA11x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does 16's PE Ratio compare to its peers?

The above table shows the PE ratio for 16 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.9x
4 Wharf (Holdings)
78.1x52.8%HK$74.3b
19 Swire Pacific
3.4x-19.4%HK$89.8b
1821 ESR Group
31.9x26.3%HK$51.2b
683 Kerry Properties
6.2x10.6%HK$20.3b
16 Sun Hung Kai Properties
7.8x9.5%HK$197.2b

Price-To-Earnings vs Peers: 16 is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (29.9x).


Price to Earnings Ratio vs Industry

How does 16's PE Ratio compare vs other companies in the HK Real Estate Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 16 is expensive based on its Price-To-Earnings Ratio (7.8x) compared to the Hong Kong Real Estate industry average (7.4x).


Price to Earnings Ratio vs Fair Ratio

What is 16'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.

16 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: 16 is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


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 16 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$70.40
HK$91.24
+29.6%
14.8%HK$115.00HK$70.50n/a15
Jul ’25HK$67.55
HK$91.44
+35.4%
14.8%HK$115.00HK$70.50n/a15
Jun ’25HK$75.30
HK$91.18
+21.1%
14.9%HK$115.00HK$70.50n/a15
May ’25HK$72.75
HK$91.28
+25.5%
14.8%HK$115.00HK$70.50n/a15
Apr ’25HK$75.45
HK$91.28
+21.0%
14.8%HK$115.00HK$70.50n/a15
Mar ’25HK$79.45
HK$91.02
+14.6%
14.9%HK$115.00HK$70.50n/a15
Feb ’25HK$72.55
HK$96.96
+33.6%
12.5%HK$125.30HK$79.50n/a14
Jan ’25HK$84.45
HK$100.24
+18.7%
14.5%HK$128.00HK$79.50n/a14
Dec ’24HK$76.05
HK$100.35
+32.0%
15.4%HK$128.00HK$79.50n/a14
Nov ’24HK$81.10
HK$100.35
+23.7%
15.4%HK$128.00HK$79.50n/a14
Oct ’24HK$83.80
HK$106.40
+27.0%
14.3%HK$131.00HK$79.50n/a14
Sep ’24HK$88.30
HK$120.26
+36.2%
7.9%HK$132.70HK$95.00n/a14
Aug ’24HK$97.45
HK$121.43
+24.6%
7.8%HK$132.70HK$95.00n/a14
Jul ’24HK$98.70
HK$123.56
+25.2%
7.9%HK$136.20HK$95.00HK$67.5514
Jun ’24HK$98.80
HK$124.27
+25.8%
7.6%HK$136.20HK$95.00HK$75.3014
May ’24HK$109.00
HK$124.35
+14.1%
7.5%HK$136.20HK$95.00HK$72.7514
Apr ’24HK$110.00
HK$124.20
+12.9%
7.6%HK$136.20HK$95.00HK$75.4514
Mar ’24HK$108.80
HK$123.73
+13.7%
7.8%HK$136.20HK$95.00HK$79.4514
Feb ’24HK$111.30
HK$118.20
+6.2%
9.2%HK$130.70HK$84.00HK$72.5514
Jan ’24HK$106.80
HK$113.29
+6.1%
10.4%HK$130.70HK$84.00HK$84.4514
Dec ’23HK$93.60
HK$113.08
+20.8%
12.5%HK$145.00HK$84.00HK$76.0515
Nov ’23HK$85.90
HK$113.56
+32.2%
13.1%HK$145.00HK$84.00HK$81.1015
Oct ’23HK$86.85
HK$113.22
+30.4%
15.2%HK$145.00HK$80.00HK$83.8014
Sep ’23HK$92.50
HK$117.36
+26.9%
16.1%HK$145.00HK$80.00HK$88.3014
Aug ’23HK$92.65
HK$120.65
+30.2%
17.2%HK$156.80HK$80.00HK$97.4515
Jul ’23HK$92.70
HK$120.72
+30.2%
17.2%HK$156.80HK$80.00HK$98.7015

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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