Shangri-La Asia Valuation

Q: What is the Fair Price of S07 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

S07 (HK$5.2) is trading below our estimate of [[fair value]] (HK$19.59)

Is S07 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 S07 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S07 (HK$5.2) is trading below our estimate of fair value (HK$19.59)

Significantly Below Fair Value: S07 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S07?

Key metric: As S07 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for S07. This is calculated by dividing S07's market cap by their current earnings.
What is S07's PE Ratio?
PE Ratio	16.9x
Earnings	US$147.26m
Market Cap	US$2.48b

S07 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	3.7x
Enterprise Value/EBITDA	19.5x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does S07's PE Ratio compare to its peers?

The above table shows the PE ratio for S07 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	34.4x
H15 Hotel Properties	3.3x	n/a	S$1.9b
H18 Hotel Grand Central	58.6x	n/a	S$521.3m
H07 Stamford Land	15.4x	n/a	S$548.9m
B28 Bonvests Holdings	60.2x	n/a	S$361.4m
S07 Shangri-La Asia	16.9x	34.5%	HK$19.3b

Price-To-Earnings vs Peers: S07 is good value based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (34.3x).

Price to Earnings Ratio vs Industry

How does S07's PE Ratio compare vs other companies in the SG Hospitality Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
H15 Hotel Properties	3.3x	n/a	US$1.40b

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: S07 is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the SG Hospitality industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is S07'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.

S07 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.9x
Fair PE Ratio	20.9x

Price-To-Earnings vs Fair Ratio: S07 is good value based on its Price-To-Earnings Ratio (16.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst S07 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$5.20	HK$6.87 +32.0%	13.7%	HK$8.46	HK$5.79	n/a	6
Nov ’25	n/a	HK$6.86 0%	13.7%	HK$8.45	HK$5.79	n/a	6
Oct ’25	HK$5.34	HK$6.86 +28.4%	13.7%	HK$8.45	HK$5.78	n/a	6
Sep ’25	HK$4.84	HK$6.88 +42.1%	13.7%	HK$8.48	HK$5.80	n/a	6
Aug ’25	HK$5.36	HK$7.64 +42.6%	7.0%	HK$8.49	HK$6.70	n/a	6
Jul ’25	HK$5.10	HK$7.66 +50.2%	7.1%	HK$8.51	HK$6.71	n/a	6
Jun ’25	HK$5.53	HK$7.66 +38.5%	7.1%	HK$8.51	HK$6.71	n/a	6
May ’25	HK$5.69	HK$7.66 +34.6%	7.1%	HK$8.51	HK$6.71	n/a	6
Apr ’25	HK$5.05	HK$7.66 +51.7%	7.1%	HK$8.51	HK$6.71	n/a	6
Mar ’25	HK$5.30	HK$8.47 +59.9%	7.3%	HK$9.20	HK$7.48	n/a	6
Feb ’25	HK$5.00	HK$8.47 +69.5%	7.3%	HK$9.20	HK$7.48	n/a	6
Jan ’25	HK$5.48	HK$8.49 +54.9%	7.7%	HK$9.35	HK$7.47	n/a	6
Dec ’24	HK$5.11	HK$8.52 +66.7%	7.8%	HK$9.39	HK$7.50	n/a	6
Nov ’24	n/a	HK$8.52 0%	7.8%	HK$9.39	HK$7.50	n/a	6
Oct ’24	HK$5.40	HK$8.52 +57.8%	7.8%	HK$9.39	HK$7.50	HK$5.34	6
Sep ’24	HK$5.40	HK$8.79 +62.7%	9.9%	HK$10.00	HK$7.53	HK$4.84	6
Aug ’24	HK$6.50	HK$8.59 +32.1%	11.4%	HK$9.95	HK$7.30	HK$5.36	6
Jul ’24	HK$5.85	HK$8.84 +51.1%	10.7%	HK$10.00	HK$7.30	HK$5.10	5
Jun ’24	HK$5.40	HK$8.84 +63.7%	10.7%	HK$10.00	HK$7.30	HK$5.53	5
May ’24	HK$7.15	HK$8.84 +23.6%	10.7%	HK$10.00	HK$7.30	HK$5.69	5
Apr ’24	HK$7.35	HK$8.84 +20.2%	10.7%	HK$10.00	HK$7.30	HK$5.05	5
Mar ’24	HK$7.56	HK$7.81 +3.4%	15.5%	HK$10.00	HK$6.67	HK$5.30	5
Feb ’24	HK$6.83	HK$7.12 +4.2%	7.9%	HK$8.17	HK$6.64	HK$5.00	5
Jan ’24	HK$6.50	HK$7.13 +9.7%	7.8%	HK$8.16	HK$6.63	HK$5.48	5
Dec ’23	HK$5.15	HK$7.12 +38.2%	7.8%	HK$8.16	HK$6.63	HK$5.11	5
Nov ’23	HK$4.50	HK$7.28 +61.7%	7.8%	HK$8.21	HK$6.70	n/a	4

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.