HK Electric Investments and HK Electric Investments Limited

OTCPK:HKVT.Y Stock Report

Market Cap: US$5.9b

HK Electric Investments and HK Electric Investments Valuation

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

Below Fair Value: HKVT.Y ($6.58) is trading below our estimate of fair value ($34.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HKVT.Y. This is calculated by dividing HKVT.Y's market cap by their current earnings.
What is HKVT.Y's PE Ratio?
PE Ratio14.8x
EarningsHK$3.12b
Market CapHK$46.12b

Price to Earnings Ratio vs Peers

How does HKVT.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for HKVT.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.5x
IDA IDACORP
22.4x12.8%US$6.3b
TXNM TXNM Energy
25x12.8%US$4.4b
POR Portland General Electric
14.6x7.4%US$5.0b
MGEE MGE Energy
31.8xn/aUS$3.8b
HKVT.Y HK Electric Investments and HK Electric Investments
14.8x4.3%US$46.1b

Price-To-Earnings vs Peers: HKVT.Y is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does HKVT.Y's PE Ratio compare vs other companies in the US Electric Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
HKVT.Y 14.8xIndustry Avg. 21.2xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HKVT.Y is good value based on its Price-To-Earnings Ratio (14.8x) compared to the US Electric Utilities industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is HKVT.Y'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.

HKVT.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.8x
Fair PE Ration/a

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