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Victory Securities Holdings Company Ltd (8540) Fair Value & Analysis

Financial Services · HK · Market cap HK$916M

VS Victory Securities Holdings Company Ltd 8540 · HK
PriceHK$4.45
Fair ValueHK$3.69
Upside-17.0%
Quality75/100
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Healthy Growth
Highly profitable · 29.7% net margin
Low debt · generates free cash flow
1.07% dividend yield
Mixed vs. peers (8/14)
Moderate moat 64/100
Evidence: High Range HK$2.77 – HK$14.76 Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$1.58 to HK$3.69 (+133.5%) since Aug 6, 2026. Share price −2.3% over the past month.

A strong business, but screening 17% overvalued on our models.

What matters now

  • A high-quality business (quality 75/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The model range is unusually wide (HK$2.77 to HK$14.76). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$9.41 HK$1.20 Fair Value HK$3.69 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.20 – HK$9.41 · fair‑value band HK$2.77 – HK$14.76 · the HK$4.45 price screens above the HK$3.69 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Victory Securities Holdings Company Ltd (8540) currently trades at HK$4.45, while our model-based Fair Value estimate is HK$3.69, implying the stock looks roughly 17.0% overvalued today. The Quality Score stands at 75/100 (high quality), in the Financial Services 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, Victory Securities Holdings Company Ltd generated revenue of HK$203M at a net margin of 29.7%. Revenue grew 94.8% year over year. It earns a return on equity of 28.4%. The balance sheet holds a net cash position of HK$2.1M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$2.77 (bear case) to HK$14.76 (bull case); at HK$4.45, 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 63% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -22% fair-value upside, at -17%, 8540 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$9.03 HK$14.71 HK$25.16 80
Residual Income HK$1.69 HK$2.43 HK$14.52 76
Gordon GGM HK$0.2400 HK$0.4300 HK$0.5900 70
All 12 models by family
DCF Models
Owner Earnings HK$4.24 HK$8.33 HK$15.93 31
5Y P/E Exit HK$5.28 HK$9.34 HK$14.55 38
10Y P/E Exit HK$6.77 HK$11.60 HK$18.80 35
Earnings-Based
Graham-Dodd HK$1.93 HK$13.47 HK$18.90 54
Lynch FV HK$5.29 HK$7.56 HK$9.82 50
Dividend Discount
Gordon GGM HK$0.2400 HK$0.4300 HK$0.5900 70
DDM Multi-Stage HK$0.2400 HK$0.3900 HK$0.4500 61
Multiples
P/E Multiple HK$2.77 HK$3.69 HK$4.61 63
P/B Multiple HK$1.18 HK$1.58 HK$1.97 55
Asset-Based
NCAV (Graham) HK$0.5600 HK$0.7500 HK$1.13 50
Growth DCF
Growth DCF HK$9.03 HK$14.71 HK$25.16 80
Economic Profit
Residual Income HK$1.69 HK$2.43 HK$14.52 76

Widest divergence: Growth DCF (HK$14.71) versus Dividend Discount (HK$0.3900). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$203M
Revenue growth (YoY) +94.8%
Net margin 29.7%
Return on equity 28.4%
Free cash flow HK$144M FY2025
P/E ratio 13.9 as of Jul 3, 2026
More key figures
Operating margin -32.3%
EPS (TTM) HK$0.2100
Dividend yield 1.1%
EPS growth (YoY) +615%
Net cash HK$2.1M FY2025

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

Quality Score breakdown

Overall quality 75/100

Of which business quality 74 · Market factors (momentum, volatility) 35

Profitability 67
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 58
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

Victory Securities (Holdings) Company Limited, together with its subsidiaries, provides integrated financial services in Hong Kong. It provides securities/futures/insurance policies broking, placing, and underwriting services; securities advising, financing, asset management, and financial advisory services; and investment and insurance consultancy services.

Full company description

Victory Securities (Holdings) Company Limited, together with its subsidiaries, provides integrated financial services in Hong Kong. It provides securities/futures/insurance policies broking, placing, and underwriting services; securities advising, financing, asset management, and financial advisory services; and investment and insurance consultancy services. The company also offers virtual asset dealing services; securities brokerage services with respect to virtual asset-related exchange traded funds; and virtual asset advisory services, as well as markets and distributes virtual asset-related private funds. The company was incorporated in 2016 and is headquartered in Sheung Wan, Hong Kong. Victory Securities (Holdings) Company Limited operates as a subsidiary of Dr. TT Kou's Family Company Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Victory Securities Holdings Company Ltd reported revenue of HK$212M in FY2025 versus HK$82.9M in FY2021, a compound +26.4%/yr. Reported net income was HK$60.4M in FY2025, compounding +41.4%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$212M
Latest YoY
+210.2%
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.
+48.0%
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.
+22.5%
Avg. growth/yr (10Y) 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.
+15.7%
Revenue +26.4%/yr
FY21 HK$82.9M
FY22 HK$65.2M
FY23 HK$51.6M
FY24 HK$68.2M
FY25 HK$212M
Net income +41.4%/yr
FY21 HK$15.1M
FY22 −HK$24.2M
FY23 −HK$25.0M
FY24 −HK$3.1M
FY25 HK$60.4M

8540 screens 17% overvalued. Compare with Mirae Asset Securities Co →

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Cite: Fair Value Calculator (2026). "Victory Securities Holdings Company Ltd Fair Value". https://www.fairvalue-calculator.com/stock/8540

Peer Group

Capital Markets · 423 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 74 · Top 25%
Fair Value upside −17% · Below median
Return on equity (TTM) 28% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 30% · Above median
Operating margin (TTM) -32% · Bottom 25%
Revenue growth 95% · Top 25%
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.04× · Lower than median

Valuation Multiples vs Capital Markets median · lower = cheaper

P/E (TTM) 13.9× · Cheaper than median
P/B 3.83× · Pricier than 75% of peers
P/S (TTM) 4.50× · Pricier than median
P/FCF 0.8× · Cheaper than median
EV/EBITDA 11.4× · Pricier 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 11 · sector 14
FUTURE 100 · sector 96
PAST 100 · sector 30
HEALTH 98 · sector 93
DIVIDEND 21 · sector 42

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 Capital Markets stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Mirae Asset Securities Co 006800 38,050 KRW 18,009 KRW -53%
Meritz Financial Group 138040 118,600 KRW 52,717 KRW -56%
Korea Investment Holdings 071050 200,500 KRW 189,335 KRW -6%
NH Investment & Securities Co 005940 28,550 KRW 22,396 KRW -22%
Samsung Securities Co 016360 93,100 KRW 75,573 KRW -19%
Kiwoom Securities Co 039490 299,000 KRW 214,812 KRW -28%
SSI Securities Corporation SSI 25,300 VND 17,375 VND -31%
Bolsas y Mercados Argentinos S.A BYMA 313.75 ARS 294.30 ARS -6%
Daishin Securities Co 003540 26,950 KRW 48,790 KRW +81%
SK Securities Co 001515 4,285 KRW 1,395 KRW -67%

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Frequently asked questions

Is Victory Securities Holdings Company Ltd (8540) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$3.69 versus a price of HK$4.45, about −17% (overvalued).
What is the fair value of 8540?
Our model-based fair value for Victory Securities Holdings Company Ltd is HK$3.69 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$4.45.
What is the quality score of 8540?
Victory Securities Holdings Company Ltd has a Quality Score of 75/100. 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 Victory Securities Holdings Company Ltd (8540)?
Victory Securities Holdings Company Ltd reported trailing-twelve-month revenue of about HK$203M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 8540?
The net profit margin of Victory Securities Holdings Company Ltd is about 29.7%, meaning it keeps roughly 29.7% of revenue as net income. Based on the latest reported figures.
Does Victory Securities Holdings Company Ltd pay a dividend?
Victory Securities Holdings Company Ltd currently shows a dividend yield of about 1.07% relative to its recent price (as of Aug 13, 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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