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Ridge Outdoor Intl Ltd (2720) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$2.4B

RO Ridge Outdoor Intl Ltd 2720 · HK
PriceHK$24.00
Fair ValueHK$10.69
Upside-55.5%
Quality78/100
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Weak Growth
Solidly profitable · 11.2% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/13)
Wide moat 67/100
Evidence: High Range HK$6.80 – HK$13.65 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$11.67 to HK$10.69 (−8.4%) since Aug 5, 2026. Share price +20.8% over the past month.

A strong business, but screening 55% overvalued on our models.

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What matters now

  • A high-quality business (quality 78/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (HK$13.65). The favourable scenario is already priced in.
  • A fairly wide model range (HK$6.80 to HK$13.65) leaves room in how you read the outcome.
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Price vs Fair Value (6 months)

HK$38.00 HK$18.82 Fair Value HK$10.69 Feb 2026 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 13, 2026.

How to read this chart

6‑month range HK$18.82 – HK$38.00 · fair‑value band HK$6.80 – HK$13.65 · the HK$24.00 price screens above the HK$10.69 fair value. As of Aug 13, 2026.

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Analysis

Ridge Outdoor Intl Ltd (2720) currently trades at HK$24.00, while our model-based Fair Value estimate is HK$10.69, implying the stock looks roughly 55.5% overvalued today. The Quality Score stands at 78/100 (high quality), in the Consumer Cyclical 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, Ridge Outdoor Intl Ltd generated revenue of HK$662M at a net margin of 11.2%. Net debt stands at HK$144M. The stock trades on a trailing P/E of 28.4 (as of Jul 2, 2026). Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$6.80 (bear case) to HK$13.65 (bull case); at HK$24.00, 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 share trades about 39% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 8% fair-value upside, at -55%, 2720 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$5.36 HK$8.42 HK$13.14 80
Residual Income HK$0.7600 HK$0.9200 HK$4.63 76
Rev-Margin DCF HK$4.89 HK$7.83 HK$11.45 74
All 26 models by family
DCF Models
FCF DCF HK$5.36 HK$8.61 HK$13.76 38
Owner Earnings HK$7.42 HK$12.04 HK$19.36 31
5Y Revenue Exit HK$4.89 HK$7.86 HK$11.77 39
5Y EBITDA Exit HK$6.66 HK$11.35 HK$17.09 41
5Y P/E Exit HK$7.77 HK$13.57 HK$20.00 38
10Y Revenue Exit HK$4.87 HK$7.66 HK$11.67 36
10Y EBITDA Exit HK$6.13 HK$10.10 HK$15.86 37
10Y P/E Exit HK$6.85 HK$11.65 HK$18.14 35
Earnings-Based
Graham-Dodd HK$3.92 HK$15.66 HK$21.29 54
Lynch FV HK$3.89 HK$5.56 HK$7.23 50
PEG = 1.0 HK$3.89 HK$5.56 HK$7.23 46
EPV HK$6.10 HK$7.00 HK$7.77 59
Dividend Discount
Gordon GGM HK$5.84 HK$11.63 HK$17.61 70
DDM Multi-Stage HK$5.84 HK$10.05 HK$12.28 61
Multiples
P/E Multiple HK$9.51 HK$12.68 HK$15.85 63
P/S Multiple HK$4.65 HK$6.20 HK$7.75 58
P/B Multiple HK$0.6700 HK$0.8900 HK$1.11 55
EV/EBIT HK$11.09 HK$14.64 HK$18.19 53
EV/EBITDA HK$8.06 HK$10.60 HK$13.14 54
EV/Revenue HK$4.78 HK$6.64 HK$8.50 43
Asset-Based
NCAV (Graham) HK$0.1100 HK$0.1500 HK$0.2200 50
Growth DCF
Growth DCF HK$5.36 HK$8.42 HK$13.14 80
Rev-Margin DCF HK$4.89 HK$7.83 HK$11.45 74
Economic Profit
Residual Income HK$0.7600 HK$0.9200 HK$4.63 76
ROIC Compounder HK$6.10 HK$7.00 HK$7.77 72
Growth Earnings
Growth-Adj P/E HK$7.04 HK$10.05 HK$13.07 68

Widest divergence: DCF Models (HK$10.10) versus Asset-Based (HK$0.1500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$662M
Net margin 11.2%
Free cash flow HK$54.4M FY2025
P/E ratio 28.4 as of Jul 2, 2026
Operating margin 15.3%
Net debt HK$144M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 78/100

Of which business quality 73 · Market factors (momentum, volatility) 29

Profitability 90
Margins and returns on capital today
Quality Growth 83
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 82
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

Ridge Outdoor International Limited engages in the design and manufacturing of fishing-related equipment and fishing tackle equipment.

Full company description

Ridge Outdoor International Limited engages in the design and manufacturing of fishing-related equipment and fishing tackle equipment. The company's products include chairs, bedchairs and other accessories, such as fishing chairs, fishing bedchairs, rod pods, barrows and seatboxes; shoulder bags, fishing backpacks and rod holdalls; and tents, such as bivvies, social bivvies and shelters, as well as brollies and landing nets. Its products serve a wide range of fishing scenarios such as carp fishing, match fishing, lure fishing, fly fishing and ice fishing. The company provides solutions for rest, camping, storage, shelving and transportation. The company was formerly known as Ridge International Limited and changed its name to Ridge Outdoor International Limited in November 2024. Ridge Outdoor International Limited was founded in 1993 and is headquartered in Hangzhou, China. Ridge Outdoor International Limited operates as a subsidiary of GreatCast International Limited.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Ridge Outdoor Intl Ltd reported revenue of HK$662M in FY2025 versus HK$818M in FY2022, a compound −6.8%/yr. Reported net income was HK$73.9M in FY2025, compounding −11.6%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$662M
Latest YoY
+15.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.8%
Revenue −6.8%/yr
FY22 HK$818M
FY23 HK$463M
FY24 HK$573M
FY25 HK$662M
Net income −11.6%/yr
FY22 HK$107M
FY23 HK$46.0M
FY24 HK$55.7M
FY25 HK$73.9M

2720 screens 55% overvalued. Compare with Midea Group →

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Cite: Fair Value Calculator (2026). "Ridge Outdoor Intl Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2720

Peer Group

Furnishings, Fixtures & Appliances · 318 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 78 · Top 25%
Fair Value upside −56% · Bottom 25%
Return on assets 18% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 0% · Above median
Dividend yield (TTM) 3.5% · Above median

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/E (TTM) 28.4× · Pricier than median
P/S (TTM) 3.68× · Pricier than 75% of peers
P/FCF 5.7× · Pricier than median
EV/EBITDA 22.6× · Pricier than 75% of peers

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 18
FUTURE 0 · sector 0
PAST 0 · sector 19
HEALTH 100 · sector 98
DIVIDEND 70 · sector 62

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

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 Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥84.34 ¥99.66 +18%
Gree Electric Appliances, Inc 000651 ¥40.23 ¥86.91 +116%
Haier Smart Home Co 600690 ¥21.79 ¥36.04 +65%
King Slide Works Co 2059 12,500 TWD 1,917 TWD -85%
Guangdong Songfa Ceramics Co 603268 ¥173.26 ¥38.83 -78%
Hisense Home Appliances Group 000921 ¥27.69 ¥50.62 +83%
Ecovacs Robotics Co 603486 ¥57.74 ¥54.14 -6%
Zhejiang Supor Co 002032 ¥41.68 ¥44.84 +8%
COWAY Co 021240 97,200 KRW 103,928 KRW +7%
Voltas Limited VOLTAS ₹1,290 ₹152.27 -88%

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Frequently asked questions

Is Ridge Outdoor Intl Ltd (2720) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$10.69 versus a price of HK$24.00, about −55% (overvalued).
What is the fair value of 2720?
Our model-based fair value for Ridge Outdoor Intl Ltd is HK$10.69 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$24.00.
What is the quality score of 2720?
Ridge Outdoor Intl Ltd has a Quality Score of 78/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ridge Outdoor Intl Ltd (2720)?
Ridge Outdoor Intl Ltd reported trailing-twelve-month revenue of about HK$662M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2720?
The net profit margin of Ridge Outdoor Intl Ltd is about 11.2%, meaning it keeps roughly 11.2% of revenue as net income. Based on the latest reported figures.

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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