Is New World Development (SEHK:17) Now Fairly Priced After Its 1‑Year 143% Rally?

Simply Wall St.02-03 15:24

If you are wondering whether New World Development offers value at its current price, you are not alone, especially given how sharply the stock has been moving. The share price closed at HK$10.02, ...

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The share price closed at HK$10.02, ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/real-estate-management-and-development/hkg-17/new-world-development-shares/news/is-new-world-development-sehk17-now-fairly-priced-after-its\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is New World Development (SEHK:17) Now Fairly Priced After Its 1‑Year 143% Rally?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs New World Development (SEHK:17) Now Fairly Priced After Its 1‑Year 143% Rally?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-03 15:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/real-estate-management-and-development/hkg-17/new-world-development-shares/news/is-new-world-development-sehk17-now-fairly-priced-after-its><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether New World Development offers value at its current price, you are not alone, especially given how sharply the stock has been moving. The share price closed at HK$10.02, ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/real-estate-management-and-development/hkg-17/new-world-development-shares/news/is-new-world-development-sehk17-now-fairly-priced-after-its\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0762540952.USD","symbol_name":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/hk/real-estate-management-and-development/hkg-17/new-world-development-shares/news/is-new-world-development-sehk17-now-fairly-priced-after-its","article_id":"2608538820","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7312000-choice2-main-header/1585186669177"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/real-estate-management-and-development/hkg-17/new-world-development-shares/news/is-new-world-development-sehk17-now-fairly-priced-after-its","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2608538820","pubTimestamp":1770103467,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether New World Development offers value at its current price, you are not alone, especially given how sharply the stock has been moving.\nThe share price closed at HK$10.02, with returns of 1.9% over 7 days, 35.6% over 30 days, 35.6% year to date, and 142.6% over 1 year. The 3 year and 5 year returns sit at 49.5% and 60.1% declines.\nThese moves have come as investors refocus on Hong Kong property developers and reassess balance sheet strength and asset values across...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","BK1559":"蓝筹地产股","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","00017":"新世界发展","BK1216":"多样化房地产活动"},"translate_title":"新世界发展(SEHK：17)在1年上涨143%后，现在的定价是否合理？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00017":0.9,"DCF":1},"content_text":"If you are wondering whether New World Development offers value at its current price, you are not alone, especially given how sharply the stock has been moving. The share price closed at HK$10.02, with returns of 1.9% over 7 days, 35.6% over 30 days, 35.6% year to date, and 142.6% over 1 year. The 3 year and 5 year returns sit at 49.5% and 60.1% declines. These moves have come as investors refocus on Hong Kong property developers and reassess balance sheet strength and asset values across the sector. Recent headlines around refinancing conditions and asset disposals for major developers have helped frame New World Development as part of a broader reassessment of listed property names. Our valuation checks give New World Development a score of 2 out of 6. This sets up a closer look at how different valuation methods line up on the stock today, and hints at an even more useful way to think about value that we will come back to at the end.  New World Development scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: New World Development Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes estimates of the cash a company might generate in the future and discounts those amounts back to what they could be worth in HK$ today. For New World Development, the latest twelve month free cash flow is reported at about HK$8.1b. Analysts provide near term forecasts, and Simply Wall St extends these into longer term projections. In this model, free cash flow for 2026 is HK$2.97b and for 2027 is HK$3.96b, with HK$2.20b projected for 2028. Further out, cash flows for 2029 to 2035 are extrapolated rather than based on direct analyst estimates. Using a 2 Stage Free Cash Flow to Equity model, these future cash flows are discounted back and combined to give an estimated intrinsic value of HK$5.60 per share. Compared to the current share price of HK$10.02, the model implies the stock is about 79.0% overvalued on this measure. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests New World Development may be overvalued by 79.0%. Discover 875 undervalued stocks or create your own screener to find better value opportunities. 17 Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for New World Development. Approach 2: New World Development Price vs Sales For companies where earnings can be volatile or negative, the P/S ratio is often a useful way to think about value because it compares the market value of the business to the revenue it generates, rather than to accounting profit. In general, investors tend to pay a higher multiple when they expect stronger growth or see lower risk, and a lower multiple when they are more cautious. That is why a “normal” or “fair” P/S ratio is rarely the same for every company, even within the same sector. New World Development currently trades on a P/S of 0.91x. This is above the Real Estate industry average P/S of 0.66x, but below the peer group average of 5.18x. To cut through these rough comparisons, Simply Wall St uses a proprietary “Fair Ratio” of 1.07x, which reflects factors such as earnings growth, industry, profit margins, market cap and risk profile. This Fair Ratio can be more informative than simple industry or peer comparisons because it is tailored to the company’s specific characteristics rather than broad group averages. Comparing the Fair Ratio of 1.07x with the current P/S of 0.91x suggests the shares are UNDERVALUED on this measure. Result: UNDERVALUED SEHK:17 P/S Ratio as at Feb 2026 P/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1424 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your New World Development Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your story about New World Development, linked to your assumptions about its future revenue, earnings and margins. A Narrative connects three things in one place: the company’s story, a financial forecast that reflects that story, and a fair value that falls out of those numbers. On Simply Wall St, millions of investors build and share Narratives on the Community page, where you can see how others frame New World Development and you can easily set up your own view without needing complex models. Each Narrative compares its Fair Value with the current share price, so you can quickly see whether your story suggests the stock is closer to a buy, a hold, or a sell point, and your view automatically refreshes when new information such as news or earnings updates arrive. For example, one New World Development Narrative on the Community page might assume a cautious path with modest revenue growth and a lower fair value per share, while another could assume stronger cash generation, higher margins and a materially higher fair value, highlighting how different but clearly defined stories lead to different decisions. Do you think there's more to the story for New World Development? Head over to our Community to see what others are saying! SEHK:17 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if New World Development might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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