Reassessing CK Hutchison Holdings (SEHK:1)’s Valuation After Its Recent Share Price Strength

CK Hutchison Holdings (SEHK:1) has quietly delivered a strong run, with shares up around 32% year to date and almost 39% over the past year, prompting a closer look at what the market is now pricing in.

See our latest analysis for CK Hutchison Holdings.

That climb has not been a quick spike but a steady build in momentum, with a roughly 7 percent 3 month share price return feeding into a near 39 percent one year total shareholder return, as investors reassess both growth prospects and risk.

If CK Hutchison’s run has you rethinking your watchlist, this could be a good moment to explore fast growing stocks with high insider ownership as potential next wave opportunities.

Yet with earnings accelerating, analyst targets still implying upside, and intrinsic value models suggesting a sizeable discount, the real question is whether CK Hutchison remains a mispriced opportunity or if markets are already baking in the next leg of growth.

Most Popular Narrative Narrative: 12.8% Undervalued

Against a last close of HK$54.10, the most followed narrative sees fair value closer to HK$62.01, implying upside if its long term roadmap plays out.

The analysts have a consensus price target of HK$61.1 for CK Hutchison Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of HK$75.0, and the most bearish reporting a price target of just HK$57.0.

Read the complete narrative.

Want to see the engine behind that upside case? The narrative leans on faster earnings growth, higher margins, and a tighter future earnings multiple. Curious which assumptions really move the dial?

Result: Fair Value of $62.01 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, several pressure points, from one off FX and disposal gains to prolonged weakness in China’s health and beauty retail, could easily challenge this upside case.

Find out about the key risks to this CK Hutchison Holdings narrative.

Another Angle on Valuation

While the narrative pegs fair value around HK$62, our view of CK Hutchison’s price to earnings ratio tells a different story. At roughly 26.8 times earnings, the stock trades richer than Asian industrial peers at 11.1 times and even above a fair ratio of 19 times, suggesting less margin of safety if sentiment cools.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own CK Hutchison Holdings Narrative

If this perspective does not fully line up with your own view, or you prefer hands on research, you can build a personalised narrative in just a few minutes, starting with Do it your way.

A great starting point for your CK Hutchison Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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