Automated Systems Holdings Valuation

Q: What is the Fair Price of 771 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

771 (HK$0.67) is trading below our estimate of [[fair value]] (HK$1.62)

Is 771 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 771 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 771 (HK$0.67) is trading below our estimate of fair value (HK$1.62)

Significantly Below Fair Value: 771 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 771?

Key metric: As 771 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 771. This is calculated by dividing 771's market cap by their current earnings.
What is 771's PE Ratio?
PE Ratio	7.1x
Earnings	HK$78.33m
Market Cap	HK$558.58m

771 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 771's PE Ratio compare to its peers?

The above table shows the PE ratio for 771 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	12.8x
2176 CCID Consulting	7.5x	n/a	HK$588.0m
2501 Maiyue Technology	22.5x	n/a	HK$445.0m
46 Computer And Technologies Holdings	12x	n/a	HK$398.0m
1985 Microware Group	9.1x	n/a	HK$335.5m
771 Automated Systems Holdings	7.1x	n/a	HK$558.6m

Price-To-Earnings vs Peers: 771 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (12.8x).

Price to Earnings Ratio vs Industry

How does 771's PE Ratio compare vs other companies in the Asian IT Industry?

13 Companies	Price / Earnings	Estimated Growth	Market Cap

13 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 771 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Asian IT industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is 771'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.

771 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 771'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.

Discover undervalued companies

Newborn Town

HK$4.3b

An investment holding company, engages in the social networking business worldwide.

9911

HK$3.62

-2.9%

58.1%

Capinfo

HK$617.3m

Provides information technology (IT) services in the People’s Republic of China.

1075

HK$2.13

-7.4%

-33.4%

Chinasoft International

HK$13.6b

Engages in development and provision of information technology (IT) solutions, IT outsourcing, and training services in the People’s Republic of China, the United States, Malaysia, Japan, Singapore, India, and Saudi Arabia.

354

HK$5.32

-6.5%

-19.0%