Hongkong Land Holdings Valuation

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

HNGK.Y ($23.28) is trading below our estimate of [[fair value]] ($27.74)

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

Below Fair Value: HNGK.Y ($23.28) is trading below our estimate of fair value ($27.74)

Significantly Below Fair Value: HNGK.Y is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HNGK.Y?

Key metric: As HNGK.Y is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HNGK.Y. This is calculated by dividing HNGK.Y's market cap by their current revenue.
What is HNGK.Y's PS Ratio?
PS Ratio	4.8x
Sales	US$2.15b
Market Cap	US$10.30b

HNGK.Y 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	7.3x
Enterprise Value/EBITDA	25x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does HNGK.Y's PS Ratio compare to its peers?

The above table shows the PS ratio for HNGK.Y 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	10.9x
LB LandBridge	13.2x	30.2%	US$5.0b
KW Kennedy-Wilson Holdings	3.1x	n/a	US$1.5b
CPPT.L Copper Property CTL Pass Through Trust	8.5x	n/a	US$860.3m
FRPH FRP Holdings	18.9x	n/a	US$593.2m
HNGK.Y Hongkong Land Holdings	4.8x	-1.4%	US$10.3b

Price-To-Sales vs Peers: HNGK.Y is good value based on its Price-To-Sales Ratio (4.8x) compared to the peer average (10.9x).

Price to Sales Ratio vs Industry

How does HNGK.Y's PS Ratio compare vs other companies in the US Real Estate Industry?

32 Companies	Price / Sales	Estimated Growth	Market Cap
JLL Jones Lang LaSalle	0.6x	6.4%	US$12.39b
COMP Compass	0.6x	11.5%	US$3.23b
CWK Cushman & Wakefield	0.3x	5.6%	US$3.18b
EXPI eXp World Holdings	0.5x	5.7%	US$2.04b

32 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HNGK.Y is expensive based on its Price-To-Sales Ratio (4.8x) compared to the US Real Estate industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is HNGK.Y'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.

HNGK.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.8x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: HNGK.Y is expensive based on its Price-To-Sales Ratio (4.8x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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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