Frontier Services Group Valuation

Is 500 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-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 500 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500 (HK$0.17) is trading below our estimate of fair value (HK$1.52)

Significantly Below Fair Value: 500 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500?

Key metric: As 500 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 500. This is calculated by dividing 500's market cap by their current revenue.
What is 500's PS Ratio?
PS Ratio	0.5x
Sales	HK$767.90m
Market Cap	HK$396.56m

500 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	0.7x
Enterprise Value/EBITDA	5.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 500's PS Ratio compare to its peers?

The above table shows the PS ratio for 500 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.3x
1292 Changan Minsheng APLL Logistics	0.04x	n/a	HK$369.5m
2246 Gogox Holdings	0.4x	n/a	HK$320.6m
6123 YTO International Express and Supply Chain Technology	0.1x	n/a	HK$551.7m
1442 Infinity Logistics and Transport Ventures	0.8x	n/a	HK$619.2m
500 Frontier Services Group	0.5x	n/a	HK$396.6m

Price-To-Sales vs Peers: 500 is expensive based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does 500's PS Ratio compare vs other companies in the HK Logistics Industry?

4 Companies	Price / Sales	Estimated Growth	Market Cap
6123 YTO International Express and Supply Chain Technology	0.1x	n/a	US$70.90m
1292 Changan Minsheng APLL Logistics	0.04x	n/a	US$47.48m
8348 Tianjin Binhai Teda Logistics (Group)	0.02x	n/a	US$13.89m
8489 Grand Power Logistics Group	0.04x	n/a	US$5.05m

No more companies available in this PS range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 500 is expensive based on its Price-To-Sales Ratio (0.5x) compared to the Hong Kong Logistics industry average (0.2x).

Price to Sales Ratio vs Fair Ratio

What is 500'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.

500 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 500's Price-To-Sales 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.