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Honma Golf Limited (6858) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$1.7B

HG Honma Golf Limited 6858 · HK
PriceHK$2.83
Fair ValueHK$3.18
Upside+12.3%
Quality54/100
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Weak Growth
Loss-making · -9.2% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 2/100
Evidence: High Range HK$2.38 – HK$3.97 Share as image

Fair value as of: Aug 6, 2026

From 24 valuation models · updated 4 days ago

Fair value updated Aug 6, 2026, revised from HK$3.15 to HK$3.18 (+0.9%) since Jul 2, 2026.

A solid business, screening 12% undervalued on our models.

What matters now

  • Our model range runs from HK$2.38 (bear) to HK$3.97 (bull), base HK$3.18. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 54/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

HK$4.96 HK$2.58 Fair Value HK$3.18 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range HK$2.58 – HK$4.96 · fair‑value band HK$2.38 – HK$3.97 · the HK$2.83 price screens below the HK$3.18 fair value. Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

Honma Golf Limited (6858) currently trades at HK$2.83, while our model-based Fair Value estimate is HK$3.18, implying the stock looks roughly 12.3% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Honma Golf Limited generated revenue of HK$19.7B at a net margin of -9.2%. Revenue declined 19.8% year over year. It earns a return on equity of -6.9%. The balance sheet holds a net cash position of HK$10.0B. Fundamentals as of Aug 6, 2026

Our scenario range runs from HK$2.38 (bear case) to HK$3.97 (bull case); at HK$2.83, the current price sits within 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 22% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 2% fair-value upside, at 12%, 6858 screens cheaper 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$39.10 HK$41.64 HK$45.80 80
Residual Income HK$33.78 HK$33.39 HK$28.73 76
Rev-Margin DCF HK$33.62 HK$34.23 HK$35.18 74
All 24 models by family
DCF Models
FCF DCF HK$38.83 HK$41.48 HK$46.23 38
Owner Earnings HK$67.69 HK$78.41 HK$97.59 31
5Y Revenue Exit HK$33.62 HK$33.98 HK$34.54 39
5Y EBITDA Exit HK$48.86 HK$60.01 HK$75.06 41
5Y P/E Exit HK$49.13 HK$60.47 HK$74.24 38
10Y Revenue Exit HK$35.84 HK$36.41 HK$36.88 36
10Y EBITDA Exit HK$44.36 HK$51.67 HK$59.87 37
10Y P/E Exit HK$44.51 HK$51.94 HK$59.40 35
Earnings-Based
Graham-Dodd HK$13.27 HK$19.46 HK$22.99 54
EPV HK$29.47 HK$29.49 HK$29.50 59
Dividend Discount
Gordon GGM HK$11.65 HK$12.98 HK$14.59 70
DDM Multi-Stage HK$11.65 HK$14.37 HK$17.54 61
Multiples
P/E Multiple HK$32.20 HK$42.94 HK$53.67 63
P/S Multiple HK$24.88 HK$33.18 HK$41.47 58
P/B Multiple HK$24.88 HK$33.18 HK$41.47 55
EV/EBIT HK$29.81 HK$29.97 HK$30.14 53
EV/EBITDA HK$60.97 HK$71.51 HK$82.06 54
EV/Revenue HK$29.65 HK$29.79 HK$29.93 43
Asset-Based
NCAV (Graham) HK$23.74 HK$31.82 HK$47.49 50
Growth DCF
Growth DCF HK$39.10 HK$41.64 HK$45.80 80
Rev-Margin DCF HK$33.62 HK$34.23 HK$35.18 74
Economic Profit
Residual Income HK$33.78 HK$33.39 HK$28.73 76
ROIC Compounder HK$29.47 HK$29.49 HK$29.50 72
Growth Earnings
Growth-Adj P/E HK$22.70 HK$32.43 HK$42.16 68

Widest divergence: DCF Models (HK$51.67) versus Dividend Discount (HK$12.98). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$19.7B
Revenue growth (YoY) -19.8%
Net margin -9.2%
Return on equity -6.9%
Free cash flow HK$696M FY2026
P/E ratio 31.9
More key figures
Operating margin -16.7%
EPS (TTM) HK$-3.00
EPS growth (YoY) -61.2%
Net cash HK$10.0B FY2026

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 55 · Market factors (momentum, volatility) 46

Profitability 35
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 99
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 18
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

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Japan, Korea, Hong Kong, Macau, rest of China, North America, Europe, and internationally.

Full company description

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Japan, Korea, Hong Kong, Macau, rest of China, North America, Europe, and internationally. The company offers driver, fairway, utility, hybrid, iron, wedge, and putter clubs; and golf balls, caddie bags, golf bags, golf club head covers, golf gloves, shoes, belts and socks, and other golf-related accessories. It also offers apparel for men and women under the BERES, TOUR WORLD, Be ZEAL, and HONMA brands; and engages in trading business. The company distributes its products through HONMA-branded self-operated stores; third-party retailers, including sports megastores; and wholesale distributors that on-sell to other third parties. Honma Golf Limited was founded in 1959 and is headquartered in Tokyo, Japan.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Honma Golf Limited reported revenue of HK$23.5B in FY2026 versus HK$29.0B in FY2022, a compound −5.1%/yr. Reported net income was HK$1.2B in FY2026, compounding −33.9%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$23.5B
Latest YoY
+8.4%
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.
−7.3%
Avg. growth/yr (5Y) 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.
+0.7%
Avg. growth/yr (12Y) 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.
+3.4%
Revenue −5.1%/yr
FY22 HK$29.0B
FY23 HK$29.5B
FY24 HK$26.2B
FY25 HK$21.7B
FY26 HK$23.5B
Net income −33.9%/yr
FY22 HK$6.2B
FY23 HK$3.3B
FY24 HK$4.8B
FY25 −HK$264M
FY26 HK$1.2B
Character of growth · EPS growth decomposed (2015-2026) −2.0 % p.a.
Revenue per share +1.1 pp

of which total revenue +1.5 pp · buybacks/dilution −0.4 pp

EBIT margin −11.4 pp
Tax rate −1.9 pp
Residual (interest, one-offs) +10.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Honma Golf Limited Fair Value". https://www.fairvalue-calculator.com/stock/6858

Peer Group

Leisure · 190 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 54 · Below median
Fair Value upside +12% · Above median
Return on assets -1% · Bottom 25%
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) -17% · Bottom 25%
Revenue growth -20% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Leisure median · lower = cheaper

P/E (TTM) 31.9× · Pricier than median
P/S (TTM) 0.01× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper 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 50 · sector 14
FUTURE 0 · sector 18
PAST 0 · sector 19
HEALTH 99 · sector 94
DIVIDEND 0 · sector 51

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.

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Li Ning Company 2331 HK$14.80 HK$29.26 +98%
Benefit Systems S.A BFT 5,255 PLN 3,714 PLN -29%
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Frequently asked questions

Is Honma Golf Limited (6858) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of HK$3.18 versus a price of HK$2.83, about +12% (undervalued).
What is the fair value of 6858?
Our model-based fair value for Honma Golf Limited is HK$3.18 (as of Aug 6, 2026), built from audited fundamentals. The current price is HK$2.83.
What is the quality score of 6858?
Honma Golf Limited has a Quality Score of 54/100. 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 Honma Golf Limited (6858)?
Honma Golf Limited reported trailing-twelve-month revenue of about HK$19.7B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 6858?
The net profit margin of Honma Golf Limited is about -9.2%, meaning it is currently running at a net loss. 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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