KE Holdings Valuation

Is 2423 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2423 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2423 (HK$48.35) is trading below our estimate of fair value (HK$89.28)

Significantly Below Fair Value: 2423 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2423?

Key metric: As 2423 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2423. This is calculated by dividing 2423's market cap by their current earnings.
What is 2423's PE Ratio?
PE Ratio40.5x
EarningsCN¥4.16b
Market CapCN¥168.77b

Price to Earnings Ratio vs Peers

How does 2423's PE Ratio compare to its peers?

The above table shows the PE ratio for 2423 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.4x
2669 China Overseas Property Holdings
10.9x13.9%HK$16.9b
1109 China Resources Land
5.3x4.9%HK$159.7b
16 Sun Hung Kai Properties
11.5x11.8%HK$219.5b
688 China Overseas Land & Investment
6x5.7%HK$143.6b
2423 KE Holdings
40.5x20.4%HK$23.3b

Price-To-Earnings vs Peers: 2423 is expensive based on its Price-To-Earnings Ratio (40.5x) compared to the peer average (8.4x).


Price to Earnings Ratio vs Industry

How does 2423's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$226.69m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
3883 China Aoyuan Group
0.06xn/aUS$126.28m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
2423 40.5xIndustry Avg. 7.2xNo. of Companies15PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2423 is expensive based on its Price-To-Earnings Ratio (40.5x) compared to the Hong Kong Real Estate industry average (7.2x).


Price to Earnings Ratio vs Fair Ratio

What is 2423'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.

2423 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.5x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: 2423 is expensive based on its Price-To-Earnings Ratio (40.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).


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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