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HONG LEONG FINANCE LIMITED (S41) Fair Value & Analysis

Financial Services · SG · Market cap 1.1B SGD

HL HONG LEONG FINANCE LIMITED S41 · SG
Price2.51 SGD
Fair Value2.09 SGD
Upside-16.7%
Quality48/100
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Expensive Growth
Highly profitable · 33.4% net margin
Low debt · negative free cash flow
3.59% dividend yield
Mixed vs. peers (6/13)
Moderate moat 62/100
Evidence: High Range 1.57 SGD – 2.62 SGD Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 5 days ago

Fair value updated Aug 13, 2026, revised from 1.81 SGD to 2.09 SGD (+15.5%) since Aug 9, 2026. Share price +0.4% over the past month.

Below-average quality, and screening another 17% overvalued on our models.

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What matters now

  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • 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)

2.70 SGD 1.83 SGD Fair Value 2.09 SGD May 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 1.83 SGD – 2.70 SGD · fair‑value band 1.57 SGD – 2.62 SGD · the 2.51 SGD price screens above the 2.09 SGD fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

HONG LEONG FINANCE LIMITED (S41) currently trades at 2.51 SGD, while our model-based Fair Value estimate is 2.09 SGD, implying the stock looks roughly 16.7% overvalued today. The Quality Score stands at 48/100 (below-average 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, HONG LEONG FINANCE LIMITED generated revenue of 188M SGD at a net margin of 33.4%. Revenue declined 23.3% year over year. It earns a return on equity of 3.0%. The stock trades on a trailing P/E of 17.9. Fundamentals as of Aug 13, 2026

Our scenario range runs from 1.57 SGD (bear case) to 2.62 SGD (bull case); at 2.51 SGD, 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 8% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 47% fair-value upside, at -17%, S41 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
Residual Income 3.24 SGD 3.13 SGD 2.49 SGD 76
Gordon GGM 0.9900 SGD 1.07 SGD 1.18 SGD 70
P/E Multiple 1.36 SGD 1.81 SGD 2.27 SGD 63
All 6 models by family
Dividend Discount
Gordon GGM 0.9900 SGD 1.07 SGD 1.18 SGD 70
DDM Multi-Stage 0.9900 SGD 1.18 SGD 1.42 SGD 61
Multiples
P/E Multiple 1.36 SGD 1.81 SGD 2.27 SGD 63
P/B Multiple 1.78 SGD 2.37 SGD 2.96 SGD 55
Asset-Based
NCAV (Graham) 2.35 SGD 3.15 SGD 4.70 SGD 50
Economic Profit
Residual Income 3.24 SGD 3.13 SGD 2.49 SGD 76

Widest divergence: Asset-Based (3.15 SGD) versus Dividend Discount (1.07 SGD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 188M SGD
Revenue growth (YoY) -23.3%
Net margin 33.4%
Return on equity 3.0%
Free cash flow −190M SGD FY2025
P/E ratio 17.9
More key figures
Operating margin 41.7%
EPS (TTM) 0.1400 SGD
Dividend yield 3.6%
EPS growth (YoY) -40.9%

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

Quality Score breakdown

Overall quality 48/100

Of which business quality 38 · Market factors (momentum, volatility) 55

Profitability 30
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 80
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

Hong Leong Finance Limited operates as a financial services company for consumer, and small and medium-sized enterprises (SMEs) markets in Singapore.

Full company description

Hong Leong Finance Limited operates as a financial services company for consumer, and small and medium-sized enterprises (SMEs) markets in Singapore. The company offers a range of deposits and savings, which includes fixed deposit and saving accounts, saving accounts, and premium saver accounts, as well as silver 40 plus and golden 55 plus accounts; and business current accounts, fixed deposit and saving accounts, fixed saving accounts, and premium saver accounts. It also provides personal loans, including car and home loans, private property loan, mortgage equity, credit plus share loan, premium, and share financing, as well as HLF digital and safe deposit box personal services. In addition, the company offers corporate finance services, including corporate finance advisory services, such as capital restructuring, project and investment evaluation, financial advisory, mergers and acquisitions, independent financial advisory; and equity capital market and fund-raising services comprising initial public offering, secondary and dual listings, reverse takeovers and rights issues and private placements. Further, it provides SME loans, which includes equipment and commercial vehicle; vehicle and charger green loans; new clinic and clinic expansion loan, medical, dental equipment, dental property loan, and working capital loan for medical practitioners; commercial property plus and property development loan; working capital loans, accounts receivable financing, BizCap, revolving working capital, suppliers' invoice financing, and letters of credit; government assistance schemes, SME working capital, and trade loans. Additionally, the company offers corporate finance advisory services, and deposits and business current account, as well as eGuarantee services. The company was formerly known as Singapore Finance Limited. Hong Leong Finance Limited was incorporated in 1961 and is based in Singapore.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HONG LEONG FINANCE LIMITED reported revenue of 183M SGD in FY2025 versus 189M SGD in FY2021, a compound −0.8%/yr. Reported net income was 62.7M SGD in FY2025, compounding −7.3%/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)
183M SGD
Latest YoY
−21.4%
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.
−10.8%
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.
+2.9%
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.
+0.8%
Revenue −0.8%/yr
FY21 189M SGD
FY22 259M SGD
FY23 212M SGD
FY24 233M SGD
FY25 183M SGD
Net income −7.3%/yr
FY21 84.8M SGD
FY22 131M SGD
FY23 93.4M SGD
FY24 104M SGD
FY25 62.7M SGD

S41 screens 17% overvalued. Compare with PT Bank Central Asia Tbk →

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Cite: Fair Value Calculator (2026). "HONG LEONG FINANCE LIMITED Fair Value". https://www.fairvalue-calculator.com/stock/S41

Peer Group

Banks - Regional · 1089 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 47 · Below median
Fair Value upside −17% · Below median
Return on equity (TTM) 3% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 33% · Above median
Operating margin (TTM) 42% · Above median
Revenue growth -23% · Bottom 25%
Dividend yield (TTM) 3.6% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 17.9× · Pricier than 75% of peers
P/B 0.41× · Cheaper than 75% of peers
P/S (TTM) 4.67× · Pricier than 75% of peers
PEG 1.23× · 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 11 · sector 33
FUTURE 0 · sector 44
PAST 12 · sector 41
HEALTH 100 · sector 85
DIVIDEND 72 · sector 56

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 Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,130 IDR 6,067 IDR +47%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

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Frequently asked questions

Is HONG LEONG FINANCE LIMITED (S41) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 2.09 SGD versus a price of 2.51 SGD, about −17% (overvalued).
What is the fair value of S41?
Our model-based fair value for HONG LEONG FINANCE LIMITED is 2.09 SGD (as of Aug 13, 2026), built from audited fundamentals. The current price is 2.51 SGD.
What is the quality score of S41?
HONG LEONG FINANCE LIMITED has a Quality Score of 48/100. 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 HONG LEONG FINANCE LIMITED (S41)?
HONG LEONG FINANCE LIMITED reported trailing-twelve-month revenue of about 188M SGD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of S41?
The net profit margin of HONG LEONG FINANCE LIMITED is about 33.4%, meaning it keeps roughly 33.4% of revenue as net income. Based on the latest reported figures.
Does HONG LEONG FINANCE LIMITED pay a dividend?
HONG LEONG FINANCE LIMITED currently shows a dividend yield of about 3.59% 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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