<div id="readability-page-1"><div><h3>Key Insights</h3><ul><li> The projected fair value for Qeeka Home (Cayman) is HK$0.27 based on Dividend Discount Model </li> <li> Current share price of HK$0.26 suggests Qeeka Home (Cayman) is potentially trading close to its fair value </li> <li> Qeeka Home (Cayman)'s peers are currently trading at a premium of 16% on average </li> </ul><p>Does the November share price for Qeeka Home (Cayman) Inc. (HKG:1739) reflect what it's really worth? Today, we will estimate the stock's intrinsic value  by taking the forecast future cash flows of the company and discounting them back to today's value.  We will take advantage of the Discounted Cash Flow (DCF) model for this purpose.  It may sound complicated, but actually it is quite simple!</p><p> Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation.  If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. </p><p>We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</p><h2> The Model </h2> <p> We have to calculate the value of Qeeka Home (Cayman) slightly differently to other stocks because it is a consumer services company.  In this approach dividends per share (DPS) are used, as free cash flow is difficult to estimate and often not reported by analysts.  Unless a company pays out the majority of its FCF as a dividend, this method will typically underestimate the value of the stock.  The 'Gordon Growth Model' is used, which simply assumes that dividend payments will continue to increase at a sustainable growth rate forever.  The dividend is expected to grow at an annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.8%. We then discount this figure to today's value at a cost of equity of 7.6%.  Compared to the current share price of HK$0.3, the company appears   about fair value    at a 5.3% discount to where the stock price trades currently.   The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. </p><p>Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate)</p><p>= CN¥0.05 / (7.6% – 2.8%)</p><p>= HK$0.3</p><figure><img height="760" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/570181176-dcf-1-dark-2/1762466934497?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1706" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/570181176-dcf-1-dark-2/1762466934497"/><figcaption>SEHK:1739 Discounted Cash Flow November 6th 2025</figcaption></figure> <h2> The Assumptions </h2><p> We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.  Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions.  The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance.  Given that we are looking at Qeeka Home (Cayman) as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.  In this calculation we've used 7.6%, which is based on a levered beta of 0.911. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. </p> <p><span> See our latest analysis for Qeeka Home (Cayman) </span></p><h3>SWOT Analysis for Qeeka Home (Cayman)</h3><div><div><p><strong>Strength</strong></p><ul><li>Debt is well covered by earnings.</li></ul> <ul><li>Dividend is in the top 25% of dividend payers in the market.</li></ul> <ul> Dividend information for 1739.</ul> </div><div><p><strong>Weakness</strong></p><ul><li> No major weaknesses identified for 1739.</li></ul></div><div><p><strong>Opportunity</strong></p><ul><li>Has sufficient cash runway for more than 3 years based on current free cash flows.</li></ul> <ul><li> Current share price is below our estimate of fair value.</li></ul> <ul><li>Lack of analyst coverage makes it difficult to determine 1739's earnings prospects.</li></ul></div><div><p><strong>Threat</strong></p><ul><li>Debt is not well covered by operating cash flow.</li></ul> <ul><li>Paying a dividend but company is unprofitable.</li></ul> <ul>Is 1739 well equipped to handle threats?</ul> </div></div><h2> Next Steps: </h2><p> Valuation is only one side of the coin in terms of building your investment thesis, and it  shouldn't be the only metric you look at when researching a company.  DCF models are not the be-all and end-all of investment valuation.  Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation.  For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation.  For Qeeka Home (Cayman), there are three  further  factors  you should consider: </p><ol> <li> <strong>Risks</strong>: As an example, we've found <strong>4 warning signs for Qeeka Home (Cayman)</strong> (2 are significant!) that you need to consider before investing here. </li> <li> <strong>Other High Quality Alternatives</strong>: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! </li><li> <strong>Other Environmentally-Friendly Companies</strong>: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of! </li> </ol><p>PS. Simply Wall St updates its DCF calculation for every Hong Kong stock every day, so if you want to find the intrinsic value of any other stock just search here.</p></div></div>

01739

<p>Qeeka Home (Cayman) Inc. (HKG:1739) has a projected fair value of HK$0.27, with its current share price at HK$0.26, indicating it is trading close to fair value. The company uses a Dividend Discount Model for valuation, with dividends expected to grow at 2.8% annually. The DCF analysis suggests a fair value of HK$0.30, slightly above the current price. Key strengths include strong earnings coverage of debt and a competitive dividend yield, while weaknesses include unprofitability and limited analyst coverage.</p>

A Look At The Fair Value Of Qeeka Home (Cayman) Inc. (HKG:1739)