1070.HK
TCL Electronics Holdings Ltd
Price:  
9.95 
HKD
Volume:  
4,175,501
China | Household Durables

1070.HK Fair Value

75.4 %
Upside

What is the fair value of 1070.HK?

As of 2025-07-16, the Fair Value of TCL Electronics Holdings Ltd (1070.HK) is 17.45 HKD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 9.95 HKD, the upside of TCL Electronics Holdings Ltd is 75.4%.

Is 1070.HK a good investment?

With the market price of 9.95 HKD and our fair value calculation, TCL Electronics Holdings Ltd (1070.HK) is a good investment. Investing in 1070.HK stocks now will result in a potential gain of 75.4%.

9.95 HKD
Stock Price
17.45 HKD
Fair Price
FAIR VALUE CALCULATION

1070.HK Fair Value

Peter Lynch's formula is:

1070.HK Fair Value
= Earnings Growth Rate x TTM EPS
1070.HK Fair Value
= 25 x 0.7
1070.HK Fair Value
= 17.45

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income3,599.441,184446.98743.631,759.371,547
YoY growth57.6%-67.1%-62.2%66.4%136.6%26.2%

1070.HK Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Huizhou Desay SV Automotive Co Ltd56,394499.21-2.4%
Hisense Visual Technology Co Ltd31,2801.844.786.5%
Shenzhen MTC Co Ltd20,7790.38.4183.2%
Sichuan Jiuzhou Electronic Co Ltd15,2600.24.39-70.5%
Guangdong Create Century Intelligent Equipment Group Corp Ltd13,9520.20.83-90.1%
Xiamen Intretech Inc13,0300.41.75-89.5%
Edifier Technology Co Ltd11,7540.512.43-6%
Q Technology (Group) Co Ltd12,2760.26.42-37.8%
JVCkenwood Corp185,484123.63,091173.3%
Guoguang Electric Ltd8,6730.511.39-26.1%

1070.HK Fair Value - Key Data

Market Cap (mil)25,083
P/E14.3x
Forward P/E7.5x
EPS0.7
Avg earnings growth rate26.2%
TTM earnings1,759

1070.HK Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.