Comparison of shares – Telecommunication

The table below shows three mobile phone operators in Singapore.

The columns in the table are: closing share price as at 26 August (mid-day), book value per share, price to book ratio, dividend yield and price earning ratio (based last reported financial results).

 

Price at 26 Aug

Book value per share

Price To Book

Dividend Yield (%)

Price to earnings

STARHUB

2.86

0.031

90.954

6.993

15.862

MOBILE ONE

2.45

0.334

7.342

5.837

13.611

SINGTEL

3.04

1.526

1.992

5.197

12.746

Singapore Telecom (Singtel) has the largest market capitalisation of US$40 billion, followed by StarHub at US$4 billion and Mobile One has the lowest market capitalisation of US$1.8 billion.

Looking purely from some ratios of these corporations, StarHub had the highest dividend yield of 6.993%. Singtel came in last at 5.197%, but a strong yield no doubt when compared with many listed corporations.

In terms of Price-to-Book ratio, Singtel’s share price is the closest to book value but the same cannot be said of the other two. Their share prices were significantly higher than book value.

On the basis of Price Earnings ratio, Singtel again was valued lower than the other two operators. The price paid for StarHub and Mobile One were 15.8 times and 13.6 times earnings respectively. Singtel was 12.7 times.

  52-week Low 52-week High Current Price
StarHub $2.28 $2.92 $2.86
Mobile One $2.09 $2.70 $2.45
Singtel $2.84 $3.41 $3.04

When compared with 52-week high and low prices, StarHub is trading at significantly above mid-point of the price range. Mobile One is at mid-point currently, but Singtel is trading at below mid-point of price range.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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