AMTD Digital Inc. (HKD)
Valuation Overview•Is AMTD Digital Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 52/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
HKD exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-58.6% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 33.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $8.7M | -94.0% | -58.6% | -32.5% | — | |
| EBITDA | -$651K | — | -57.5% | — | — | |
| Net Income | $31.9M | -91.1% | -40.9% | — | — | |
| EPS (Diluted) | $0.17 | -91.2% | -43.3% | -23.2% | — | |
| Free Cash Flow | $21.3M | -98.8% | -63.0% | -54.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 64.1% | 78.8% | 57.4% | 59.3% |
| Operating Margin | 33.5% | 57.2% | 61.5% | 56.7% |
| Net Margin | 179.1% | 147.9% | 119.9% | 115.9% |
| FCF Margin | 113.6% | 49.9% | 43.3% | 73.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | — | $0.09 | — |
Total return is -8.1% (1Y), lagging the benchmark by -33.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +26.9% | +17.6% | — |
| 1Y | -8.1% | -33.1% | — |
| 3YCAGR | -36.2% | -56.0% | — |
| 5YCAGR | -36.3% | -48.9% | — |
| 10YCAGR | -20.2% | -33.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about AMTD Digital Inc. (HKD) valuation, health, and returns.
Based on peer relative multiples, AMTD Digital Inc. appears Slightly expensive versus peers compared to industry peers.
AMTD Digital Inc. has multiple valuation anchors: Peer Relative Fair Value: $1.48. A convergence of these signals offers higher conviction.
AMTD Digital Inc. displays fair financial health with a composite quality score of 52/100, supported by a Altman Z-Score of 0.8 (distress zone), Piotroski F-Score of 2/9, Return on Invested Capital (ROIC) of 0.6%.
AMTD Digital Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
AMTD Digital Inc.'s current growth trajectory is Decelerating. The company achieved -94.0% 1Y revenue growth and -91.2% 1Y EPS growth, compared to its 3Y revenue CAGR of -58.6%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for AMTD Digital Inc. include: -56.9% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.02x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.