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Wharf Real Estate Investment Company (1997) Fair Value & Analysis

Real Estate · HK · Market cap HK$65.8B

WR Wharf Real Estate Investment Company 1997 · HK
PriceHK$31.92
Fair ValueHK$39.84
Upside+24.8%
Quality61/100
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Weak Growth
Loss-making · -33.2% net margin
Low debt · generates free cash flow
6.17% dividend yield
Ranks above peers (11/14)
Narrow moat 37/100
Evidence: High Range HK$29.71 – HK$56.54 Share as image

Fair value as of: Aug 13, 2026

From 13 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from HK$40.10 to HK$39.84 (−0.6%) since Aug 5, 2026. Share price +32.9% over the past month.

A solid business, screening 25% undervalued on our models.

What matters now

  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$29.71 to HK$56.54) leaves room in how you read the outcome.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

HK$39.40 HK$15.90 Fair Value HK$39.84 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$15.90 – HK$39.40 · fair‑value band HK$29.71 – HK$56.54 · the HK$31.92 price screens below the HK$39.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Wharf Real Estate Investment Company (1997) currently trades at HK$31.92, while our model-based Fair Value estimate is HK$39.84, implying the stock looks roughly 24.8% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Wharf Real Estate Investment Company generated revenue of HK$12.8B at a net margin of -33.2%. It earns a return on equity of -2.3%. Net debt stands at HK$32.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$29.71 (bear case) to HK$56.54 (bull case); at HK$31.92, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 58% above its 52-week low, currently above its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 15% fair-value upside, at 25%, 1997 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$15.48 HK$23.69 HK$37.72 80
Rev-Margin DCF HK$12.90 HK$22.50 HK$33.69 74
Gordon GGM HK$11.57 HK$12.66 HK$14.33 70
All 13 models by family
DCF Models
FCF DCF HK$14.48 HK$22.94 HK$38.59 38
5Y Revenue Exit HK$12.90 HK$22.00 HK$35.22 39
5Y EBITDA Exit HK$22.42 HK$38.47 HK$59.74 41
10Y Revenue Exit HK$12.81 HK$19.65 HK$26.98 36
10Y EBITDA Exit HK$19.13 HK$29.84 HK$41.37 37
Dividend Discount
Gordon GGM HK$11.57 HK$12.66 HK$14.33 70
DDM Multi-Stage HK$11.57 HK$14.52 HK$18.65 61
Multiples
EV/EBIT HK$43.76 HK$60.69 HK$77.63 53
EV/EBITDA HK$33.20 HK$46.61 HK$60.03 54
EV/Revenue HK$13.63 HK$22.50 HK$31.36 43
Asset-Based
NCAV (Graham) HK$29.92 HK$40.10 HK$59.85 50
Growth DCF
Growth DCF HK$15.48 HK$23.69 HK$37.72 80
Rev-Margin DCF HK$12.90 HK$22.50 HK$33.69 74

Widest divergence: Multiples (HK$46.61) versus Dividend Discount (HK$12.66). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$12.8B
Net margin -33.2%
Return on equity -2.3%
Free cash flow HK$6.7B FY2025
Operating margin 72.8%
EPS (TTM) HK$-0.7900
More key figures
Dividend yield 6.2%
EPS growth (YoY) -34.4%
Net debt HK$32.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 70

Profitability 6
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 60
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Wharf Real Estate Investment Company Limited, an investment holding company, develops, owns, and operates properties and hotels in Hong Kong, Mainland China, and Singapore. It operates through Investment Properties, Development Properties, Hotel, and Investment segments.

Full company description

Wharf Real Estate Investment Company Limited, an investment holding company, develops, owns, and operates properties and hotels in Hong Kong, Mainland China, and Singapore. It operates through Investment Properties, Development Properties, Hotel, and Investment segments. The company's properties include Harbour City, a commercial space comprising offices, retail shops, serviced apartments, hotels and clubs, and car parking spaces; and Times Square, a retail space that consists of office and car parking spaces. It also owns and operates the Wheelock House and Crawford House commercial properties; The Murray hotel; Plaza Hollywood, a shopping mall with shops, restaurants, and a cinema multiplex; The Star Ferry, which operates two inner harbor ferry services; and Wheelock Place and Scotts Square malls. In addition, the company engages in the leasing and management of retail and office properties, and serviced apartments; property and equity investments; and provision of leasing, finance, treasury, public transport, and management services. The company was founded in 1886 and is headquartered in Kowloon, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Wharf Real Estate Investment Company reported revenue of HK$12.8B in FY2025 versus HK$16.0B in FY2021, a compound −5.5%/yr. Reported net income was −HK$4.3B in FY2025.

Growth Quality 23/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$12.8B
Latest YoY
−0.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.8%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.8%
Revenue −5.5%/yr
FY21 HK$16.0B
FY22 HK$12.4B
FY23 HK$13.3B
FY24 HK$12.9B
FY25 HK$12.8B
Net income
FY21 HK$4.4B
FY22 −HK$8.9B
FY23 HK$4.8B
FY24 HK$891M
FY25 −HK$4.3B
Character of growth · EPS growth decomposed (2014-2025) −20.4 % p.a.
Revenue per share −3.2 pp

of which total revenue −3.2 pp · buybacks/dilution +0.0 pp

EBIT margin +1.6 pp
Tax rate −2.9 pp
Residual (interest, one-offs) −15.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Wharf Real Estate Investment Company Fair Value". https://www.fairvalue-calculator.com/stock/1997

Peer Group

Real Estate Services · 529 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside +25% · Above median
Return on assets 3% · Above median
Net margin (TTM) -33% · Bottom 25%
Operating margin (TTM) 73% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 6.2% · Top 25%
Debt / equity 0.13× · Lower than median

Valuation Multiples vs Real Estate Services median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.65× · Cheaper than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 3.1× · Cheaper than 75% of peers
PEG 0.20× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 66 · sector 35
FUTURE 0 · sector 10
PAST 0 · sector 16
HEALTH 94 · sector 85
DIVIDEND 100 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Real Estate Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Plaza S.A MALLPLAZA 3,989 CLP 4,571 CLP +15%
PT Solusi Tunas Pratama Tbk SUPR 43,850 IDR 15,049 IDR -66%
Cencosud Shopping S.A CENCOMALLS 2,412 CLP 2,976 CLP +23%
PT Sarana Menara Nusantara Tbk. owns and TOWR 392.00 IDR 1,012 IDR +158%
PT Metropolitan Kentjana Tbk MKPI 22,000 IDR 19,160 IDR -13%
PT Bangun Kosambi Sukses Tbk, CBDK 3,610 IDR 3,464 IDR -4%
IRSA Inversiones y Representaciones Sociedad Anónima, IRSA 2,495 ARS 2,990 ARS +20%
PT Plaza Indonesia Realty Tbk PLIN 2,510 IDR 2,698 IDR +7%
PT MNC Tourism Indonesia Tbk, KPIG 74.00 IDR 122.12 IDR +65%
PT Indonesian Paradise Property Tbk INPP 770.00 IDR 291.52 IDR -62%

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Frequently asked questions

Is Wharf Real Estate Investment Company (1997) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$39.84 versus a price of HK$31.92, about +25% (undervalued).
What is the fair value of 1997?
Our model-based fair value for Wharf Real Estate Investment Company is HK$39.84 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$31.92.
What is the quality score of 1997?
Wharf Real Estate Investment Company has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Wharf Real Estate Investment Company (1997)?
Wharf Real Estate Investment Company reported trailing-twelve-month revenue of about HK$12.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1997?
The net profit margin of Wharf Real Estate Investment Company is about -33.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Wharf Real Estate Investment Company pay a dividend?
Wharf Real Estate Investment Company currently shows a dividend yield of about 6.17% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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