PE and P/B Ratios of some stocks

The following table shows Price Earnings ratio (PE) and Price to Book (P/B) ratio based on third quarter 2013 results.

EPS for Qtr NAV/RNAV Price @ 22/11 PE Ratio P/B Ratio
DBS

1.4

 13.26

 17.09

12.21

 1.29

OCBC **

0.774

 8.10

 10.46

13.51

 1.29

UOB

1.74

 17.27

 20.94

12.03

 1.21

SGX +

0.086

 0.721

 7.21

20.96

 10.00

Keppel Corp

0.253

 4.98

 11.16

11.03

 2.24

SembCorp Ind

0.1415

 2.84

 5.28

9.33

 1.86

SembCorp Marine

0.0621

 1.21

 4.40

17.71

 3.64

Singtel +

0.0546

 1.44

 3.71

16.99

 2.58

StarHub *

0.055

 0.69

 4.27

19.41

 6.22

M1

0.043

 0.38

 3.25

18.90

 8.49

CapitaLand

0.032

 3.74

 3.03

23.67

 0.81

Keppel Land

0.082

 4.15

 3.57

10.88

 0.86

City Developments

0.133

 8.36

 10.01

18.82

 1.20

UOL

0.1214

 8.51

 6.15

12.66

 0.72

SIA +

0.136

 11.30

 10.24

18.82

 0.91

Comfort Delgro

0.0361

 0.9805

 1.94

13.43

 1.98

SMRT +

0.009

 0.516

 1.32

36.67

 2.56

SBS Transit

0.0115

 1.11

 1.32

28.70

 1.19

For the banks, eps is annualised
PE ratio is based on annualised earnings (times 4 quarters)

+ different quarter end other than third quarter
* NAV is for the company and not group
** Based on core earnings excluding one-time divestment gains

Earnings are for the quarter. In order to compute Price to Earnings ratio, the quarter earnings are annualised by simple multiple of four. Note this is simplistic. In the case of three banks, the earnings per share are already annualised by the banks in their results.

Both PE ratio and P/B ratio give investors an idea as to the valuation of each counter vis-à-vis the competitors in the same sector.

Can you see some values in some stocks? However, this is just one aspect of valuation of a business. The actual year performance can vary from forecast or projection from the quarter results.

Copyright © 2013, 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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4 Responses to PE and P/B Ratios of some stocks

  1. Cae says:

    Yahoo finance list the PE ratio of Kepland as 6.45 (http://sg.finance.yahoo.com/q?s=K17.SI)
    Possible to share where you get the figures from ?
    Either your source or Yahoo Finance is incorrect.

  2. kclee says:

    Hi there Mr. Lim
    I’ve been following your blog which I find very useful for a beginner investor like myself. So far, I’ve done ok in the sense as of now, I’m in the red of about $40 – broker fees :/. I’m into dividend/income stocks that I will hold for long term and am looking at quite a number in your list.

    So I hope you’ll help me get a clearer picture of whether my assessments are more or less on track, bearing in mind I have no accounting experience; indeed, maths is my poorest subject in school. I understand these are only basic assessments.

    For banks, I pick UOB which has the lowest PE and PB ratios.

    For SGX, I don’t know what to make of it since both its PE and PB are so high, but given that it has no direct competition, I’ve been told it’s a buy at around $7.

    For Keppel and Sembcorp, the latter is better value.

    For telcos, I’m quite at a lost since they all look very expensive even if their prices drop 10%.

    Looking forward to your reply…and wishing you a happy new year.

    • limkimtong says:

      Hi,

      As a rule for my blog, I do not offer direct advice on specific stock or investment. Prices vary due to many factors and some can be as random because of lack of information. In my portfolio, there are some investments which are under water and I am still coming to grip with why it happened that way. The stocks you mentioned are being watched closely by analysts and news reporters. They had their views as to hold, buy or sell decisions. Read about these companies and form your own decisions based on your circumstances, such as risk profile, investment horizon, etc. I am afraid I am not able to shed more light on your queries.

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