New World Development Company Limited

SEHK:17 Stock Report

Market Cap: HK$19.5b

New World Development Valuation

Is 17 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: 17 (HK$7.61) is trading above our estimate of fair value (HK$4.84)

Significantly Below Fair Value: 17 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 17?

Other financial metrics that can be useful for relative valuation.

17 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/Revenue1.7x
Enterprise Value/EBITDA13.9x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does 17's PE Ratio compare to its peers?

The above table shows the PE ratio for 17 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.3x
683 Kerry Properties
6.2x10.6%HK$20.3b
697 Shoucheng Holdings
24.6x18.3%HK$9.8b
41 Great Eagle Holdings
10.8xn/aHK$8.3b
1821 ESR Group
31.9x26.3%HK$51.2b
17 New World Development
24.4x25.2%HK$19.5b

Price-To-Earnings vs Peers: 17 is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (18.3x).


Price to Earnings Ratio vs Industry

How does 17'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: 17 is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the Hong Kong Real Estate industry average (7.4x).


Price to Earnings Ratio vs Fair Ratio

What is 17'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.

17 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio11.8x

Price-To-Earnings vs Fair Ratio: 17 is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).


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 17 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$7.61
HK$8.98
+18.1%
22.2%HK$14.22HK$6.00n/a16
Jul ’25HK$7.31
HK$8.98
+22.9%
22.2%HK$14.22HK$6.00n/a16
Jun ’25HK$8.46
HK$9.11
+7.7%
20.5%HK$14.22HK$6.40n/a16
May ’25HK$8.38
HK$9.49
+13.2%
18.9%HK$14.22HK$6.80n/a16
Apr ’25HK$8.26
HK$10.09
+22.2%
16.4%HK$14.22HK$8.00n/a16
Mar ’25HK$9.20
HK$10.62
+15.5%
25.5%HK$19.00HK$8.00n/a16
Feb ’25HK$9.81
HK$12.71
+29.5%
26.0%HK$20.04HK$9.20n/a15
Jan ’25HK$12.12
HK$13.56
+11.8%
25.6%HK$20.04HK$9.20n/a15
Dec ’24HK$11.10
HK$15.77
+42.0%
23.3%HK$20.40HK$9.86n/a12
Nov ’24HK$14.74
HK$16.17
+9.7%
20.6%HK$20.40HK$10.96n/a11
Oct ’24HK$15.24
HK$21.23
+39.3%
24.6%HK$30.30HK$12.00n/a11
Sep ’24HK$16.66
HK$22.41
+34.5%
18.9%HK$30.30HK$15.50n/a11
Aug ’24HK$19.00
HK$22.41
+18.0%
18.9%HK$30.30HK$15.50n/a11
Jul ’24HK$19.28
HK$23.10
+19.8%
18.2%HK$30.30HK$15.50HK$7.3113
Jun ’24HK$18.24
HK$25.43
+39.4%
27.6%HK$45.00HK$15.50HK$8.4615
May ’24HK$20.85
HK$25.63
+22.9%
27.1%HK$45.00HK$15.50HK$8.3815
Apr ’24HK$21.05
HK$25.61
+21.7%
27.7%HK$45.00HK$15.50HK$8.2615
Mar ’24HK$22.05
HK$25.57
+15.9%
28.0%HK$45.00HK$15.50HK$9.2015
Feb ’24HK$23.90
HK$25.47
+6.6%
30.9%HK$45.00HK$15.50HK$9.8115
Jan ’24HK$22.00
HK$24.88
+13.1%
35.2%HK$45.00HK$15.50HK$12.1215
Dec ’23HK$18.24
HK$25.22
+38.2%
34.2%HK$45.00HK$15.50HK$11.1015
Nov ’23HK$16.16
HK$26.75
+65.6%
29.7%HK$45.00HK$16.00HK$14.7415
Oct ’23HK$22.30
HK$34.34
+54.0%
22.1%HK$48.00HK$20.50HK$15.2414
Sep ’23HK$25.25
HK$36.51
+44.6%
16.3%HK$48.00HK$28.00HK$16.6614
Aug ’23HK$26.15
HK$36.97
+41.4%
16.8%HK$48.00HK$28.00HK$19.0014
Jul ’23HK$28.15
HK$37.20
+32.2%
16.5%HK$48.00HK$28.00HK$19.2814

Analyst Forecast: Target price is less than 20% higher than the current share price.


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