Hiap Seng Industries Valuation

Is 1L2 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 1L2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1L2 (SGD0) is trading below our estimate of fair value (SGD0.01)

Significantly Below Fair Value: 1L2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1L2?

Key metric: As 1L2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1L2. This is calculated by dividing 1L2's market cap by their current earnings.
What is 1L2's PE Ratio?
PE Ratio	0.6x
Earnings	S$23.24m
Market Cap	S$13.50m

1L2 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 1L2's PE Ratio compare to its peers?

The above table shows the PE ratio for 1L2 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	7.9x
554 King Wan	1.8x	n/a	S$21.6m
41B Huationg Global	1.4x	n/a	S$26.9m
53W Attika Group	12.8x	n/a	S$36.0m
BRD Sapphire	15.6x	n/a	S$20.8m
1L2 Hiap Seng Industries	0.6x	n/a	S$13.5m

Price-To-Earnings vs Peers: 1L2 is good value based on its Price-To-Earnings Ratio (0.6x) compared to the peer average (7.9x).

Price to Earnings Ratio vs Industry

How does 1L2's PE Ratio compare vs other companies in the SG Construction Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	6.5x	15.1%
1L2 Hiap Seng Industries	0.6x	n/a	US$10.04m
41B Huationg Global	1.4x	n/a	US$20.05m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap
Industry Avg.	6.5x	15.1%
1L2 Hiap Seng Industries	0.6x	n/a	US$10.04m

No more companies

Price-To-Earnings vs Industry: 1L2 is good value based on its Price-To-Earnings Ratio (0.6x) compared to the SG Construction industry average (6.5x).

Price to Earnings Ratio vs Fair Ratio

What is 1L2'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.

1L2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	0.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1L2'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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