- Since February, FUTU's share price fell by 80%; the company appears to be cheaply valued now.
- What is more, the operations are running great as the very profitable business has grown by over 500% since the outbreak of COVID.
- However, highly likely regulations will have a material impact on FUTU's business, while political tensions between the US and China represent an additional risk.
- Investors should adjust the seemingly cheap valuation multiples for these risks.
- By my own adjustments, I arrive at an EV/EBIT multiple of 43, which is quite a fair value for the company.
For further details see:
Futu Holdings Seems Cheap, But There Is A Catch