OneConnect Financial Technology Valuation
Is 6638 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of 6638 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 6638 (HK$0.7) is trading below our estimate of fair value (HK$6.75)
Significantly Below Fair Value: 6638 is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 6638?
Key metric: As 6638 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is 6638's PS Ratio? | |
|---|---|
| PS Ratio | 0.3x |
| Sales | CN¥2.82b |
| Market Cap | CN¥760.50m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | n/a |
| Enterprise Value/EBITDA | n/a |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does 6638's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 0.7x | ||
418 Founder Holdings | 1.1x | n/a | HK$1.0b |
1522 BII Railway Transportation Technology Holdings | 0.3x | n/a | HK$545.3m |
2392 Xuan Wu Cloud Technology Holdings | 0.3x | n/a | HK$463.0m |
1745 Lvji Technology Holdings | 1x | n/a | HK$708.3m |
6638 OneConnect Financial Technology | 0.3x | -6.0% | HK$819.0m |
Price-To-Sales vs Peers: 6638 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x).
Price to Sales Ratio vs Industry
How does 6638's PS Ratio compare vs other companies in the HK Software Industry?
| 3 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| Industry Avg. | 1.7x | 20.3% | |
6638 OneConnect Financial Technology | 0.3x | -6.0% | US$105.17m |
1933 OneForce Holdings | 0.2x | n/a | US$10.75m |
8060 Global Link Communications Holdings | 0.2x | n/a | US$3.52m |
| 3 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
| Industry Avg. | 1.7x | 57.7% | |
6638 OneConnect Financial Technology | 0.3x | 52.2% | US$105.17m |
Price-To-Sales vs Industry: 6638 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Software industry average (1.7x).
Price to Sales Ratio vs Fair Ratio
What is 6638's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.3x |
| Fair PS Ratio | 0.4x |
Price-To-Sales vs Fair Ratio: 6638 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).
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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