Harvey Norman Holdings (HVN.AX)
Consumer · ASX · Australia
Fundamentals
Valuation and ratings
Harvey Norman Holdings trades at A$4.79, which is 117% below the A$10.41 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 54 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Harvey Norman Holdings
Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. The company franchises and sells products in various categories, including electrical goods, furniture, computerized communications, bedding and Manchester, kitchen and small appliances, bathroom and tiles, and carpets and floorings. It operates complexes under the Harvey Norman, Domayne, and Joyce Mayne brands. The company is also involved in the property investment and media placement activities; acts as a lessor of premises to Harvey Norman, Domayne, and Joyce Mayne franchisees and other third parties, as well as retail properties; development and sale of properties; and provision of consumer finance and other commercial loans and advances. The company was founded in 1982 and is headquartered in Homebush West, Australia.
HVN.AX passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Harvey Norman Holdings (HVN.AX) undervalued?
Against our discounted cash flow estimate of A$10.41, HVN.AX at A$4.79 is 117% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is HVN.AX's P/E ratio?
HVN.AX trades at 10.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for HVN.AX, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.