Hallmark Valuation

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

HCL (PKR741.33) is trading below our estimate of [[fair value]] (PKR39927.11)

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

Below Fair Value: HCL (PKR741.33) is trading below our estimate of fair value (PKR39927.11)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HCL. This is calculated by dividing HCL's market cap by their current earnings.
What is HCL's PE Ratio?
PE Ratio	7.2x
Earnings	PK₨51.35m
Market Cap	PK₨364.00m

HCL 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	6.5x
Enterprise Value/EBITDA	57.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HCL 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	44.7x
SYM Symmetry Group	20.1x	n/a	PK₨2.9b
OCTOPUS Octopus Digital	91x	n/a	PK₨11.1b
AVN Avanceon	12.3x	n/a	PK₨22.7b
543282 Niks Technology	55.6x	n/a	₹219.0m
HCL Hallmark	7.2x	n/a	PK₨364.0m

Price-To-Earnings vs Peers: HCL is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (44.7x).

Price to Earnings Ratio vs Industry

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

12 Companies	Price / Earnings	Estimated Growth	Market Cap

12 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HCL is good value based on its Price-To-Earnings Ratio (7.2x) compared to the Asian IT industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is HCL'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.

HCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.2x
Fair PE Ratio	n/a

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