Evergrande Property Services Group Limited

SHSC:6666 Stock Report

Market Cap: HK$8.3b

Evergrande Property Services Group Valuation

Is 6666 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 6666 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6666 (HK$0.77) is trading below our estimate of fair value (HK$1.8)

Significantly Below Fair Value: 6666 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6666?

Key metric: As 6666 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6666. This is calculated by dividing 6666's market cap by their current earnings.
What is 6666's PE Ratio?
PE Ratio6.1x
EarningsCN¥1.26b
Market CapCN¥7.75b

Price to Earnings Ratio vs Peers

How does 6666's PE Ratio compare to its peers?

The above table shows the PE ratio for 6666 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
10 Hang Lung Group
6.7xn/aHK$13.5b
2869 Greentown Service Group
15.7x13.8%HK$11.7b
6049 Poly Property Services
10.7x10.3%HK$16.9b
2602 Onewo
13.6x13.6%HK$25.2b
6666 Evergrande Property Services Group
6.1xn/aHK$8.3b

Price-To-Earnings vs Peers: 6666 is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does 6666's PE Ratio compare vs other companies in the HK Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
29 Dynamic Holdings
0.3xn/aUS$226.57m
2768 Jiayuan International Group
1.4x31.6%US$151.18m
3883 China Aoyuan Group
0.06xn/aUS$138.59m
2117 Datang Group Holdings
1.2xn/aUS$87.18m
6666 6.1xIndustry Avg. 7.2xNo. of Companies15PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6666 is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Hong Kong Real Estate industry average (7.5x).


Price to Earnings Ratio vs Fair Ratio

What is 6666'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.

6666 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6666'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.


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