Longfor Group Holdings Limited

OTCPK:LNGP.F Stock Report

Market Cap: US$9.3b

Longfor Group Holdings Valuation

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

Below Fair Value: LNGP.F ($1.71) is trading below our estimate of fair value ($7.8)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNGP.F?

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

The above table shows the Price to Earnings ratio for LNGP.F. This is calculated by dividing LNGP.F's market cap by their current earnings.
What is LNGP.F's PE Ratio?
PE Ratio6.3x
EarningsCN¥10.66b
Market CapCN¥67.47b

Price to Earnings Ratio vs Peers

How does LNGP.F's PE Ratio compare to its peers?

The above table shows the PE ratio for LNGP.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46.1x
FOR Forestar Group
7.6x2.9%US$1.6b
AXR AMREP
19.5xn/aUS$186.1m
JLL Jones Lang LaSalle
28.1x17.7%US$13.5b
STRS Stratus Properties
129.2xn/aUS$213.6m
LNGP.F Longfor Group Holdings
6.3x4.5%US$72.6b

Price-To-Earnings vs Peers: LNGP.F is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (46.1x).


Price to Earnings Ratio vs Industry

How does LNGP.F's PE Ratio compare vs other companies in the US Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
STHO Star Holdings
1.8xn/aUS$148.38m
STSR Strategic Student & Senior Housing Trust
2.5xn/aUS$41.31m
XIN Xinyuan Real Estate
0.4xn/aUS$18.24m
ILAL International Land Alliance
0.7xn/aUS$7.82m
LNGP.F 6.3xIndustry Avg. 33.6xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LNGP.F is good value based on its Price-To-Earnings Ratio (6.3x) compared to the US Real Estate industry average (33.3x).


Price to Earnings Ratio vs Fair Ratio

What is LNGP.F'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.

LNGP.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ration/a

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