As of 2025-07-18, the Fair Value of Goodbaby International Holdings Ltd (1086.HK) is 5.33 HKD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1.17 HKD, the upside of Goodbaby International Holdings Ltd is 355.8%.

Is 1086.HK a good investment?

With the market price of 1.17 HKD and our fair value calculation, Goodbaby International Holdings Ltd (1086.HK) is a good investment. Investing in 1086.HK stocks now will result in a potential gain of 355.8%.

1.17 HKD

Stock Price

5.33 HKD

Fair Price

FAIR VALUE CALCULATION

1086.HK Fair Value

Peter Lynch's formula is:

1086.HK Fair Value

= Earnings Growth Rate x TTM EPS

1086.HK Fair Value

= 25 x 0.21

1086.HK Fair Value

= 5.33

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

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	256.57	123.82	33.49	203.5	355.85	195
YoY growth	26.9%	-51.7%	-73%	507.7%	74.9%	97%

1086.HK Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Goodbaby International Holdings Ltd	1,952	0.2	5.33	355.8%
Zhejiang CFMoto Power Co Ltd	35,142	10.5	263.7	14.5%
Yotrio Group Co Ltd	8,025	0.3	6.65	79.6%
Toread Holdings Group Co Ltd	7,458	0.1	0.72	-91.5%
Shanghai Rongtai Health Technology Corp Ltd	5,114	1	4.88	-83.1%
Xiamen Comfort Science & Technology Group Co Ltd	4,134	0.1	0.49	-92.6%
Impulse Qingdao Health Tech Co Ltd	3,605	0.7	18.51	-24.1%
Youngy Health Co Ltd	3,184	0.1	1.77	-55.2%
Comefly Outdoor Co Ltd	2,384	0.9	20.76	-18.7%
Combine Will International Holdings Ltd	26	1.4	1.15	44.2%
China Environmental Technology and Bioenergy Holdings Ltd	47	0	0.89	73.8%

1086.HK Fair Value - Key Data

Market Cap (mil)	1,952
P/E	5.5x
Forward P/E	5.5x

EPS	0.21
Avg earnings growth rate	97%
TTM earnings	356

1086.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.