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MTR Corporation (0066) Fair Value & Analysis

Industrials · HK · Market cap HK$198B

MC MTR Corporation 0066 · HK
PriceHK$32.34
Fair ValueHK$17.85
Upside-44.8%
Quality49/100
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Expensive Growth
Highly profitable · 27.6% net margin
Moderate debt · negative free cash flow
4.16% dividend yield
Mixed vs. peers (7/14)
Moderate moat 61/100
Evidence: High Range HK$13.39 – HK$25.02 Share as image

Fair value as of: Jul 17, 2026

From 16 valuation models · updated 21 days ago

Share price +5.3% over the past month.

Below-average quality, and screening another 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$25.02). The favourable scenario is already priced in.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (HK$13.39 to HK$25.02) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$38.48 HK$20.74 Fair Value HK$17.85 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range HK$20.74 – HK$38.48 · fair‑value band HK$13.39 – HK$25.02 · the HK$32.34 price screens above the HK$17.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

MTR Corporation (0066) currently trades at HK$32.34, while our model-based Fair Value estimate is HK$17.85, implying the stock looks roughly 44.8% overvalued today. We read business quality at 49/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, MTR Corporation generated revenue of HK$55.5B at a net margin of 27.6%. Revenue declined 8.6% year over year. It earns a return on equity of 7.7%. Net debt stands at HK$78.2B. Fundamentals as of Jul 17, 2026

Our scenario range runs from HK$13.39 (bear case) to HK$25.02 (bull case); at HK$32.34, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 12% below its 52-week high and 28% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at -45%, 0066 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income HK$25.44 HK$27.00 HK$29.29 76
ROIC Compounder HK$0.5100 72
Gordon GGM HK$12.05 HK$25.05 HK$39.74 70
All 16 models by family
Earnings-Based
Graham-Dodd HK$15.36 HK$47.46 HK$63.07 54
Lynch FV HK$10.26 HK$14.66 HK$19.06 50
PEG = 1.0 HK$10.26 HK$14.66 HK$19.06 46
EPV HK$0.5100 59
Dividend Discount
Gordon GGM HK$12.05 HK$25.05 HK$39.74 70
DDM Multi-Stage HK$12.05 HK$19.86 HK$26.29 61
Multiples
P/E Multiple HK$33.89 HK$45.19 HK$56.49 63
P/S Multiple HK$16.74 HK$22.31 HK$27.89 58
P/B Multiple HK$28.81 HK$38.41 HK$48.01 55
EV/EBIT HK$8.55 HK$14.33 HK$20.11 53
EV/EBITDA HK$13.77 HK$21.29 HK$28.81 54
EV/Revenue HK$2.90 HK$7.91 HK$12.92 43
Asset-Based
NCAV (Graham) HK$15.47 HK$20.72 HK$30.93 50
Economic Profit
Residual Income HK$25.44 HK$27.00 HK$29.29 76
ROIC Compounder HK$0.5100 72
Growth Earnings
Growth-Adj P/E HK$28.10 HK$40.14 HK$52.18 68

Widest divergence: Growth Earnings (HK$40.14) versus Earnings-Based (HK$14.66). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) HK$55.5B
Revenue growth (YoY) -8.6%
Net margin 27.6%
Return on equity 7.7%
Free cash flow −HK$7.7B FY2025
P/E ratio 13.3
More key figures
Operating margin 37.0%
EPS (TTM) HK$1.24
Dividend yield 4.1%
EPS growth (YoY) -28.6%
Net debt HK$78.2B FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 41 · Market factors (momentum, volatility) 62

Profitability 36
Margins and returns on capital today
Quality Growth 23
Are margins and returns improving?
Cashflow 25
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 51
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

MTR Corporation Limited engages in railway design, construction, operation, maintenance, and investment in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom.

Full company description

MTR Corporation Limited engages in railway design, construction, operation, maintenance, and investment in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom. It operates through Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland China and International Railway, Property Rental and Management Businesses; Mainland China Property Development; and Other Businesses segments. The company offers passenger operation and related services on the domestic mass transit railway system, the Airport Express, cross-boundary railway connections, light rail and bus feeder with railway system, and intercity railway transport. It is also involved in railway project management and property development businesses; station commercial business, including leasing of station retail space, leasing of advertising space inside trains and stations, and enabling of telecommunication services on the railway system; property business comprising property development, investment, management, and leasing management of shopping malls and offices; and investment in related new technologies. In addition, the company provides railway management, engineering, and technology training services. MTR Corporation Limited was founded in 1975 and is headquartered in Kowloon Bay, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

MTR Corporation reported revenue of HK$55.5B in FY2025 versus HK$47.2B in FY2021, a compound +4.1%/yr. Reported net income was HK$14.0B in FY2025, compounding +10.1%/yr from FY2021.

Growth Quality 31/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$55.5B
Latest YoY
−7.6%
Avg. growth/yr (3Y)
+5.1%
Avg. growth/yr (5Y)
+5.4%
Avg. growth/yr (25Y)
+8.3%
Revenue +4.1%/yr
FY21 HK$47.2B
FY22 HK$47.8B
FY23 HK$57.0B
FY24 HK$60.0B
FY25 HK$55.5B
Net income +10.1%/yr
FY21 HK$9.6B
FY22 HK$9.8B
FY23 HK$7.8B
FY24 HK$15.8B
FY25 HK$14.0B

0066 screens 45% overvalued. Compare with Union Pacific Corporation →

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Cite: Fair Value Calculator (2026). "MTR Corporation Fair Value". https://www.fairvalue-calculator.com/stock/0066

Peer Group

Railroads · 109 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 49 · Below median
Fair Value upside −45% · Bottom 25%
Return on equity (TTM) 8% · Below median
Return on assets 3% · Above median
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 37% · Top 25%
Revenue growth -9% · Bottom 25%
Dividend yield (TTM) 4.2% · Top 25%
Debt / equity 0.51× · Higher than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 13.5× · Cheaper than median
P/B 1.03× · Cheaper than median
P/S (TTM) 3.57× · Pricier than median
EV/EBITDA 9.3× · Pricier than median
PEG 0.68× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 27
FUTURE 0 · sector 20
PAST 31 · sector 31
HEALTH 74 · sector 88
DIVIDEND 83 · sector 41

VALUE 0: the price sits above our fair-value range.

Insider activity: 30/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is MTR Corporation (0066) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of HK$17.85 versus a price of HK$32.34, about −45% (overvalued).
What is the fair value of 0066?
Our model-based fair value for MTR Corporation is HK$17.85 (as of Jul 17, 2026), built from audited fundamentals. The current price is HK$32.34.
What is the quality score of 0066?
MTR Corporation has a Quality Score of 49/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of MTR Corporation (0066)?
MTR Corporation reported trailing-twelve-month revenue of about HK$55.5B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 0066?
The net profit margin of MTR Corporation is about 27.6%, meaning it keeps roughly 27.6% of revenue as net income. Based on the latest reported figures.
Does MTR Corporation pay a dividend?
MTR Corporation currently shows a dividend yield of about 4.14% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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