Honma Golf Ltd
HKEX:6858

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Honma Golf Ltd
HKEX:6858
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Price: 2.95 HKD Market Closed
Market Cap: HK$1.8B

EV/GP

1.7
Current
7%
Cheaper
vs 3-y average of 1.9

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
1.7
=
Enterprise Value
HK$1.1B
/
Gross Profit
¥10.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
1.7
=
Enterprise Value
HK$1.1B
/
Gross Profit
¥10.8B

Valuation Scenarios

Honma Golf Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (1.9), the stock would be worth HK$3.18 (8% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-6%
Maximum Upside
+115%
Average Upside
45%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 1.7 HK$2.95
0%
3-Year Average 1.9 HK$3.18
+8%
5-Year Average 1.6 HK$2.78
-6%
Industry Average 2.9 HK$4.85
+64%
Country Average 3.7 HK$6.34
+115%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
JP
Honma Golf Ltd
HKEX:6858
1.8B HKD 1.7 -19.4
JP
Bandai Namco Holdings Inc
TSE:7832
2.3T JPY 3.9 20.2
US
Hasbro Inc
NASDAQ:HAS
13.4B USD 5 -41.5
JP
Shimano Inc
TSE:7309
1.4T JPY 6 38.7
UK
Games Workshop Group PLC
LSE:GAW
6.6B GBP 13.8 31.9
CA
BRP Inc
TSX:DOO
5.6B CAD 4.1 19.1
CN
Zhejiang CFMoto Power Co Ltd
SSE:603129
41.9B CNY 6.2 24.9
US
Acushnet Holdings Corp
NYSE:GOLF
5.6B USD 5.3 29.6
US
Brunswick Corp
NYSE:BC
5.2B USD 4.8 -37.5
IT
Technogym SpA
MIL:TGYM
4B EUR 8 34.7
US
Mattel Inc
NASDAQ:MAT
4.5B USD 2.1 11.3
P/E Multiple
Earnings Growth PEG
JP
Honma Golf Ltd
HKEX:6858
Average P/E: 26.3
Negative Multiple: -19.4
N/A N/A
JP
Bandai Namco Holdings Inc
TSE:7832
20.2
7%
2.9
US
Hasbro Inc
NASDAQ:HAS
Negative Multiple: -41.5 N/A N/A
JP
Shimano Inc
TSE:7309
38.7
32%
1.2
UK
Games Workshop Group PLC
LSE:GAW
31.9
5%
6.4
CA
BRP Inc
TSX:DOO
19.1
34%
0.6
CN
Zhejiang CFMoto Power Co Ltd
SSE:603129
24.9
N/A N/A
US
Acushnet Holdings Corp
NYSE:GOLF
29.6
12%
2.5
US
Brunswick Corp
NYSE:BC
Negative Multiple: -37.5 N/A N/A
IT
Technogym SpA
MIL:TGYM
34.7
13%
2.7
US
Mattel Inc
NASDAQ:MAT
11.3
11%
1

Market Distribution

Lower than 85% of companies in Japan
Percentile
15th
Based on 4 798 companies
15th percentile
1.7
Low
0.1 — 2.6
Typical Range
2.6 — 5.9
High
5.9 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 2.6
Median 3.7
70th Percentile 5.9
Max 45 735 393.8

Honma Golf Ltd
Glance View

Market Cap
1.8B HKD
Industry
Leisure Products

Honma Golf Ltd. operates as a holding company, which manufactures and sells golf club and golf equipment. The company is headquartered in Minato-Ku, Tokyo-To and currently employs 737 full-time employees. The company went IPO on 2016-10-06. The Company, along with its subsidiaries, is principally engaged in the research, design, manufacturing and sales of golf related products. The firm mainly operates two segments, including sales of goods, which include golf clubs, golf balls and apparel, accessories and other related products, as well as rendering of services, which primarily include maintenance and repair services for the golf clubs. The firm operates its business worldwide, primarily in Asia and also across North America, Europe and other regions. The Company’s subsidiaries include Seiyou Holdings Limited, Honma Holdings Group Limited, Honma Golf Co., Ltd, as well as World Power International Trading (Shanghai) Company Limited, among others.

Intrinsic Value
3.04 HKD
Undervaluation 3%
Intrinsic Value
Price HK$2.95
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