WH Group Ltd banner

WH Group Ltd
HKEX:288

Watchlist Manager
WH Group Ltd Logo
WH Group Ltd
HKEX:288
Watchlist
Price: 10.58 HKD -0.28% Market Closed
Market Cap: HK$135.7B

EV/OCF

6.2
Current
27%
More Expensive
vs 3-y average of 4.9

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
6.2
=
Enterprise Value
HK$117.3B
/
Operating Cash Flow
$2.6B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
6.2
=
Enterprise Value
HK$117.3B
/
Operating Cash Flow
$2.6B

Valuation Scenarios

WH Group Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (4.9), the stock would be worth HK$8.32 (21% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-21%
Maximum Upside
+19%
Average Downside
10%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 6.2 HK$10.58
0%
3-Year Average 4.9 HK$8.32
-21%
5-Year Average 5.1 HK$8.6
-19%
Industry Average 5.2 HK$8.75
-17%
Country Average 7.4 HK$12.59
+19%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
HK
WH Group Ltd
HKEX:288
136.1B HKD 6.2 11.3
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 324 870.4 540 752.8
CH
Nestle SA
SIX:NESN
205.8B CHF 15.7 23.2
US
Mondelez International Inc
NASDAQ:MDLZ
73.8B USD 20.3 30.1
FR
Danone SA
PAR:BN
43.3B EUR 13 23.8
ZA
Tiger Brands Ltd
JSE:TBS
48.7B ZAR 19.4 12.8
US
Hershey Co
NYSE:HSY
38.8B USD 18.8 44
CN
Muyuan Foods Co Ltd
SZSE:002714
237.6B CNY 13.3 24.3
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
231.2B CNY 25.4 32.8
ZA
Avi Ltd
JSE:AVI
32.7B ZAR 10.7 12.7
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.8B CHF 47.2 32.4

Market Distribution

In line with most companies in Hong Kong
Percentile
45th
Based on 1 314 companies
45th percentile
6.2
Low
0 — 4
Typical Range
4 — 12.2
High
12.2 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 4
Median 7.4
70th Percentile 12.2
Max 20 343.5

WH Group Ltd
Glance View

Market Cap
135.7B HKD
Industry
Food Products

WH Group Ltd. is a multinational powerhouse in the pork industry, tracing its roots back to the founding of Shuanghui Development in 1958, which ultimately became the backbone of the modern-day entity. In an audacious move that showcased its global ambitions, WH Group made headlines in 2013 with its acquisition of Smithfield Foods, the largest pork producer in the United States. This acquisition, pivotal in its trajectory, allowed WH Group not only to tap into the vast US consumer base but also to synergize its supply chain and enhance its processing techniques. Combining eastern and western operational strategies, the company has adeptly positioned itself to satisfy the growing global appetite for pork, benefiting from both economies of scale and an expansive distribution network. Typically referred to as a vertically integrated juggernaut, WH Group earns its revenue through a meticulously orchestrated process that spans breeding farms to supermarket shelves. By maintaining control over and optimizing each stage of the pork production process — from feed production, livestock raising, slaughtering, and processing, to packaging and marketing of its products — the company capitalizes on efficiency and cost-effectiveness. This integration allows WH Group to produce everything from fresh pork cuts to packaged, ready-to-eat meat products under various brands, fortifying its grip on both the wholesale and retail markets. The company's business model focuses on delivering a vast assortment of pork products that cater to diverse consumer preferences across continents, thereby driving its profitability and sustaining its industry dominance.

Intrinsic Value
9.69 HKD
Overvaluation 8%
Intrinsic Value
Price HK$10.58
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett