Latest Price-to-Book Ratios based on Q3 2015 financial results

Companies were reporting their financial results for the quarter ended 30 September 2015.

The following table provides information on net profit attributable to shareholders for the quarter and latest Price-to-Book ratio (P/B) based on share prices at 13 November 2015.

Counter Net Profit ($m) 3rd Qtr NAV ($) Price ($) @13/11 P/B Ratio
UOL 100 9.77 6.22 0.64
CapitaLand 192 4.14 3.06 0.74
City Development 106 9.53 7.63 0.80
SembCorp Ind 122 3.64 3.36 0.92
SIA 213 10.83 10.83 1.00
DBS 1,066 15.42 17.14 1.11
OCBC 902 7.78 8.92 1.15
UOB 858 17.49 20.15 1.15
Keppel Corp 363 5.91 6.81 1.15
SembCorp Marine 32 1.433 2.21 1.54
SBS Transit 5.4 1.07 1.90 1.78
Singtel 1,029 1.54 3.86 2.51
SMRT 25.7 0.574 1.445 2.52
SingPost 53 0.679 1.85 2.72
Comfort Delgro 85.2 1.052 2.98 2.83
SATS 59 1.305 3.90 2.99
SIA Engr 44 1.19 3.77 3.17
M1 45 0.394 2.77 7.03
SGX 99 0.794 7.55 9.51
StarHub 118 0.11 3.56 32.36

NAV = Net Asset value

Property developers such as UOL, CapitaLand, and City Developments had P/B of less than 1. SembCorp Industries was the other company with P/B of 0.92.

DBS (1.11) had the lowest P/B ratio when compared with the other two local banks (1.15).

P/B ratios of SembCorp Industries (0.92) and Keppel Corp (1.15) were lower than SembCorp Marine (1.54).

P/B ratios for Singtel, SMRT, SingPost, Comfort Delgro, SATS, SIA Engineering ranged from 2.51 to 3.17.

P/B ratios for M1, StarHub and SGX were unique for these companies based on past experience.

Note: P/B table as at 31 December 2014 (last year) was included for comparison.

Stock as at 31 Dec 2014 Stock Price P/B
UOL 6.96 0.821
CapitaLand 3.31 0.875
SIA 11.60 1.047
City Dev 10.27 1.211
DBS 20.60 1.492
SBS Transit 1.705 1.517
SembCorp Ind 4.45 1.524
UOB 24.53 1.435
Keppel Corp 8.85 1.660
OCBC 10.46 1.402
SPH 4.21 1.829
SATS 3.05 2.428
SembCorp Marine 3.26 2.568
Sing Tel 3.90 2.598
Comfort Delgro 2.60 2.601
SMRT 1.580 3.047
SingPost 1.92 5.952
M1 3.61 8.580
SGX 7.81 8.995
StarHub 4.15 48.256

When comparing P/B ratios between two dates (13.11.2015 to 31.12.2014), I noted that majority stocks declined except for Comfort Delgro, SBS Transit, SGX and SATS. This reflects the price decline since the start of this year. (STI declined to 2925.68 points vs 3365.15 points at start of the year.)

Disclaimer: Please use these data with caution. Author disclaimed responsibilities and liabilities.

Copyright © 2015, 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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