An Intrinsic Calculation For Formosa International Hotels Corporation (TWSE:2707) Suggests It's 22% Undervalued
May 23
Taiwanese (TAIEX) Hospitality Industry Analysis
UpdatedMay 29, 2024
DataAggregated Company Financials
Companies58
- 7D0.9%
- 3M11.2%
- 1Y-5.5%
- YTD3.0%
Last week, the Hospitality industry hasn't moved much but Wowprime is up 3.7% in that time. As for the longer term, the industry has declined 5.5% in the last year. Looking forward, earnings are forecast to grow by 14% annually.
Industry Valuation and Performance
Has the Taiwanese Hospitality Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 29 May 2024 | NT$317.1b | NT$197.4b | NT$14.6b | 21.2x | 21.6x | 1.6x |
| Fri, 26 Apr 2024 | NT$308.2b | NT$192.4b | NT$12.8b | 21.2x | 24x | 1.6x |
| Sun, 24 Mar 2024 | NT$297.3b | NT$184.2b | NT$12.2b | 21.9x | 24.3x | 1.6x |
| Tue, 20 Feb 2024 | NT$288.0b | NT$174.2b | NT$12.3b | 20.4x | 23.3x | 1.7x |
| Thu, 18 Jan 2024 | NT$276.7b | NT$165.3b | NT$12.0b | 20x | 23x | 1.7x |
| Sat, 16 Dec 2023 | NT$271.3b | NT$159.8b | NT$11.8b | 20.4x | 23x | 1.7x |
| Mon, 13 Nov 2023 | NT$268.6b | NT$148.4b | NT$10.8b | 20.1x | 24.9x | 1.8x |
| Wed, 11 Oct 2023 | NT$264.9b | NT$146.6b | NT$10.6b | 21.4x | 25x | 1.8x |
| Fri, 08 Sep 2023 | NT$272.4b | NT$146.6b | NT$10.6b | 22.3x | 25.7x | 1.9x |
| Sun, 06 Aug 2023 | NT$297.5b | NT$130.2b | NT$6.6b | 30.6x | 45.2x | 2.3x |
| Tue, 04 Jul 2023 | NT$327.3b | NT$128.1b | NT$5.9b | 33.2x | 55.2x | 2.6x |
| Thu, 01 Jun 2023 | NT$313.1b | NT$125.7b | NT$5.3b | 30.4x | 59.4x | 2.5x |
| Sat, 29 Apr 2023 | NT$282.2b | NT$117.8b | NT$4.4b | 30x | 64.7x | 2.4x |
| Mon, 27 Mar 2023 | NT$280.8b | NT$116.3b | NT$4.2b | 32.2x | 66.3x | 2.4x |
| Wed, 22 Feb 2023 | NT$274.2b | NT$113.6b | NT$3.2b | 35.4x | 86.8x | 2.4x |
| Fri, 20 Jan 2023 | NT$235.8b | NT$113.6b | NT$3.2b | 29.2x | 74.8x | 2.1x |
| Sun, 18 Dec 2022 | NT$228.0b | NT$113.6b | NT$3.2b | 29.5x | 72.3x | 2x |
| Tue, 15 Nov 2022 | NT$199.2b | NT$111.6b | NT$2.1b | 26.3x | 93.9x | 1.8x |
| Thu, 13 Oct 2022 | NT$202.1b | NT$104.2b | NT$1.2b | 29.8x | 163.2x | 1.9x |
| Sat, 10 Sep 2022 | NT$195.6b | NT$104.2b | NT$1.2b | 28.4x | 158.5x | 1.9x |
| Mon, 08 Aug 2022 | NT$184.8b | NT$101.4b | NT$1.3b | 25.5x | 138.3x | 1.8x |
| Wed, 06 Jul 2022 | NT$187.9b | NT$101.3b | NT$1.4b | 27.3x | 138.7x | 1.9x |
| Fri, 03 Jun 2022 | NT$187.1b | NT$101.4b | NT$1.3b | 27.4x | 146x | 1.8x |
| Sun, 01 May 2022 | NT$182.1b | NT$101.6b | NT$1.4b | 22.1x | 128.5x | 1.8x |
| Tue, 29 Mar 2022 | NT$184.5b | NT$101.9b | NT$1.5b | 25.4x | 121.6x | 1.8x |
| Thu, 24 Feb 2022 | NT$191.9b | NT$102.0b | NT$1.1b | 30.4x | 170.7x | 1.9x |
| Sat, 22 Jan 2022 | NT$176.3b | NT$102.0b | NT$1.1b | 30.9x | 157.7x | 1.7x |
| Mon, 20 Dec 2021 | NT$181.1b | NT$102.0b | NT$1.1b | 28.2x | 162x | 1.8x |
| Wed, 17 Nov 2021 | NT$188.9b | NT$103.6b | NT$444.0m | 23x | 425.5x | 1.8x |
| Fri, 15 Oct 2021 | NT$184.3b | NT$110.5b | NT$3.2b | 18.4x | 57.9x | 1.7x |
| Sun, 12 Sep 2021 | NT$181.0b | NT$110.5b | NT$3.2b | 19.3x | 56.8x | 1.6x |
| Tue, 10 Aug 2021 | NT$188.0b | NT$110.5b | NT$3.2b | 19.8x | 59x | 1.7x |
Price to Earnings Ratio
50x
Current Industry PE
- Investors are pessimistic on the Taiwanese Hospitality industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 21.6x which is lower than its 3-year average PE of 82.8x.
- The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Hospitality industry have grown 58% per year over the last three years.
- Revenues for these companies have grown 22% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Taiwanese Consumer Discretionary industry?
| TW Market | 2.89% | |
| Consumer Discretionary | 0.78% | |
| Hospitality | 0.88% | |
| Casinos and Gaming | 2.05% | |
| Hotels, Resorts and Cruise Lines | 0.99% | |
| Restaurants | 0.73% | |
| Leisure Facilities | 0.70% | |
Industry PE
- Investors are most optimistic about the Casinos and Gaming industry which is trading above its 3-year average PE ratio of 156x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Hotels, Resorts and Cruise Lines industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Leisure Facilities industry, expecting annual earnings growth of 30% over the next 5 years.
- This is better than its past earnings growth rate of 13% per year.
- In contrast, the Hotels, Resorts and Cruise Lines industry is expected to see its earnings grow by 8.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 2722 Chateau International Development | NT$69.40 | 19.4% +NT$1.3b | 0.9% | PE97.5x | |
| 2727 Wowprime | NT$239.00 | 4.4% +NT$824.5m | -21.1% | PE15x | |
| 2762 World Fitness Services | NT$99.30 | 4.5% +NT$477.3m | n/a | PE31.8x | |
| 2706 First Hotel | NT$16.60 | 4.4% +NT$350.0m | -1.8% | PE28.4x | |
| 5706 Phoenix Tours International | NT$81.00 | 6.0% +NT$336.5m | -18.3% | PE22.5x |