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Sri Lanka Equity Forum » Stock Market Talk » Lowest P/E companies in each sector...

Lowest P/E companies in each sector...

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1Lowest P/E companies in each sector... Empty Lowest P/E companies in each sector... on Sun Apr 10, 2011 11:10 am

kuk83

kuk83
Manager - Equity Analytics
Manager - Equity Analytics
Bank
DFCC- 9.8, SAMP- 12.64, NDB- 12.70, SEYB- 15.77, NTB- 16.23
Finance
CFVF- 2.44, CDB- 8.05, SFL- 11.91, ACAP- 12.25, MBSL- 12.48, LFIN- 13.77
Insurance
JINS- 7.4, UAL- 14.28, HASU- 14.75, CTCE- 14.98
Beverage, food and tobacco
COCO- 5.92, RAL- 12.53, DIST- 13.36, CTC- 13.35, BFL- 15.27, TAFL- 18.11
Chemical and pharmaceutical
HAYC- 8.56, LCEY- 10.89, CIC- 14.8
Construction and engineering
DOCK- 8.9, KAPI-
Footwear and textile
CLPL- 16.29
Hotel
RENU- 10.7, CONN- 12.64, BBH- 13.7
Diversified
CSEC- 1.86, RICH- 14.69, CFLB- 15.02, SUN- 16.72
Investment
RHL- 5.57, GUAR- 10.87, CINV- 11.17
Land and property
EAST- 7.46, CABO- 7.2, TWOD- 10, PDL- 12.2
Manufacturing
APLA- 8.44, RCL- 12.94, LLUB- 12.95, TILE- 14.55, TYRE- 15.63
Motor
DIMO- 7.09, ASHO- 12.85, UML- 14.18, SMOT- 17.51
Power energy
IOC- 7.60 [*]HWPR- 10.84 [*]VLL- 11.96
Plantation
MAL- 5.69, BALA- 6.35, UDPL- 6.19, NAMU- 6.71, TAPL- 6.94, KGAL- 7.04, KOTA- 8.27
Trading
BRWN- 7.56

Source - Capital trust research
Note- PE is calculated using forward earning based on the current earning.It can be adjusted according to future earning or losses.



Last edited by Quibit on Sun Apr 10, 2011 11:37 am; edited 1 time in total (Reason for editing : format corrected as per forum guidelines)

2Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 11:28 am

StocksWatch

StocksWatch
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Thanks for posting this buddy. This information is very helpful when making trading decisions, however, it should be noted that P/E ratio is only one of the many parameters that you should consider in analysing a fundamentals of a share.

3Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 11:48 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@StocksWatch wrote:Thanks for posting this buddy. This information is very helpful when making trading decisions, however, it should be noted that P/E ratio is only one of the many parameters that you should consider in analysing a fundamentals of a share.

Furthermore we should also consider one time capital gains which will not reoccur.

4Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 12:15 pm

Akalanka

Akalanka
Manager - Equity Analytics
Manager - Equity Analytics
study

does this low P/E means that the company is undervalued like a sleeping giant ?

i m just a beginner thats y i ask .. .

5Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 12:29 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
I'm not sure how these P/E ratios have been calculated, as you pointed out its forward PE..
However if we recalculate the share values at this given PE ratios with expected EPS;

KGAL - 7.04 (Fwd P/E) * 28.19 (EPS) = 198.5/-
NAMU - 6.71 * 15.88 - 106.55

However as per my analysis with current earnings, at a discount of 50% to sector PE, KGAL stands at 232 and NAMU stands at 131.. now I reiterate.. theses are current earnings..

I'm thinking, If at current earnings, these are much higher valued than market rate, why the forward PE is too low???

To me KGAL & NAMU Q1/2011 results have to be more than December qtr due to rubber price hike and oil palm price hike..

BFL, TAFL seems to have higher PE due to high growth potential,

When banks considred; SAMP and NTB along with DFCC have lowest PE and seems good pics.. but only with PE u cant select those, how much money they have is another factor too..

6Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 12:32 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@Akalanka wrote: study

does this low P/E means that the company is undervalued like a sleeping giant ?

i m just a beginner thats y i ask .. .

Akalanka PE is one measure to evaluate whether a share is undervalued especially when compared to sector. But be mindful there are other measure like NAV( net assert value) , PBV( price per book value) to evaluate the value of a share. For example for LAnd and Property you will be many of the NAV value of companies are higher than the tradign rpice right now. But their PE is still very high as their earnings have not justified their current price or the potential with a future sector boom.


Here is an exampel I posted for some else regadrign PE

Short Example :

ABC company 1 Year EPS is Rs 10
Now Trading at Rs 100 per Share.

PE= 100/10=10

Depending on the sector we can identify this as an undervalued share. For example if in Bank/Finance Sector, the sector PE might be 20. If this is 10, then it is undervalued. Fair Value can be PE 15 x Eps 10= Rs 150

As another example , if ABC is in Plantation sector we need to be cafeful as Plantation sector PE should be lower due to risk and volatility. So in Plantation I value say this is fair valeu already.

There many other factors which adds to a share value. It celebrity status, demand and supply, market leader, number of share in the market, pbv , nav etc are a few other facotrs.

Hope this simple explanation is useful

7Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 1:35 pm

kuk83

kuk83
Manager - Equity Analytics
Manager - Equity Analytics
Thanx guys for contributing and share your ideas.100% agree those figures not exact figures.I think those ll help to get rough idea.
I also agree NAV,Future potential and so many other factors should be consider when decide buy a particular stock.
smallville

Forward earning has been calculated by taking avg EPS for the coming quarter.
eg-KGAL

EPS for last q3 - 22.7(so the avg 22.7/3=7.5)

So forecast EPS= 22.7+7.5=30.2
Current MKT value of KGAL= 213
So PE= 213/30.2= 7.05

Note- This is not 100% correct,only for get rough idea.

Further comments are welcome.

8Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 3:11 pm

chamil


Stock Analytic
Stock Analytic
Intersting to see the companies like CFVF, CSEC are having lowest PE values and they belong to the same group. scratch

9Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 6:16 pm

Akalanka

Akalanka
Manager - Equity Analytics
Manager - Equity Analytics
thanks Laughing

i got a nice idea about, with the x. s.
Very Happy

have another q. .. Idea

how should i know the sector PE and like to know from wher i can have details of EPS, , ,

10Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 7:14 pm

ONTHEMONEY


Manager - Equity Analytics
Manager - Equity Analytics
Looking at the Bev,food & Tobacco Sector;

Majority of the stocks in this sector are overvalued with high average earnings. The exception to the rule seems to be BFL and COCO considering the potential growth in business where they operate, cash richness, company capabilities,etc..

Despite a short term revival of some stocks within this industry #BFL still remains as the front-runner in terms of future value. This is followed by COCO. Based on the above calculations BFL and COCO has a potential growth opportunity of 31% and 65% respectively. PE ratios for both stocks are well below the industry average highlighting their potential.

Both stocks can be recommended for medium to long term investment and for the savvy day trader the within day price fluctuation of BFL could be very lucrative with the right technical analysis.

Gud Luck

11Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 7:41 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@kuk83 wrote:Thanx guys for contributing and share your ideas.100% agree those figures not exact figures.I think those ll help to get rough idea.
I also agree NAV,Future potential and so many other factors should be consider when decide buy a particular stock.
smallville

Forward earning has been calculated by taking avg EPS for the coming quarter.
eg-KGAL

EPS for last q3 - 22.7(so the avg 22.7/3=7.5)

So forecast EPS= 22.7+7.5=30.2
Current MKT value of KGAL= 213
So PE= 213/30.2= 7.05

Note- This is not 100% correct,only for get rough idea.

Further comments are welcome.

Highly appreciate your explanation on this.. + from me for the effort Wink

Ok Here's how I think..
I think even if we annulised the last 3 qtr EPS, we can get the forecasted value know? I may be wrong, but I normally avg the value like that;

KGAL last 3 qtrs after deducting other income;
31/12/2010 - 201.71 Mn
30/09/2010 - 189.42 Mn
30/06/2010 - 99.06 Mn

Last 3qtr earnings = 490.19 Mn
Annualised = 490.19/3*4 = 653.6

W.Avg No of Shares (Mn) = 25
Hence 3Qtrs EPS = 490.19/25 = 19.61

But Annulised EPS = 653.6/25 = 26.14

If current price is 213, So PE should be = 213/26.14 = 8.14

As at 08-04-11, sector PE of plantations (as in CSE website) is 16.5.
So this is trading at a 50% discount to market PE then Wink thats even confirms KGAL is undervalued..

12Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Sun Apr 10, 2011 7:45 pm

mark

mark
Expert
Expert
good one..............rep from me........... Very Happy

13Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Mon Apr 11, 2011 8:38 am

kuk83

kuk83
Manager - Equity Analytics
Manager - Equity Analytics
@smallville wrote:
@kuk83 wrote:Thanx guys for contributing and share your ideas.100% agree those figures not exact figures.I think those ll help to get rough idea.
I also agree NAV,Future potential and so many other factors should be consider when decide buy a particular stock.
smallville

Forward earning has been calculated by taking avg EPS for the coming quarter.
eg-KGAL

EPS for last q3 - 22.7(so the avg 22.7/3=7.5)

So forecast EPS= 22.7+7.5=30.2
Current MKT value of KGAL= 213
So PE= 213/30.2= 7.05

Note- This is not 100% correct,only for get rough idea.

Further comments are welcome.

Highly appreciate your explanation on this.. + from me for the effort Wink

Ok Here's how I think..
I think even if we annulised the last 3 qtr EPS, we can get the forecasted value know? I may be wrong, but I normally avg the value like that;

KGAL last 3 qtrs after deducting other income;
31/12/2010 - 201.71 Mn
30/09/2010 - 189.42 Mn
30/06/2010 - 99.06 Mn

Last 3qtr earnings = 490.19 Mn
Annualised = 490.19/3*4 = 653.6

W.Avg No of Shares (Mn) = 25
Hence 3Qtrs EPS = 490.19/25 = 19.61

But Annulised EPS = 653.6/25 = 26.14 rendeer

If current price is 213, So PE should be = 213/26.14 = 8.14

As at 08-04-11, sector PE of plantations (as in CSE website) is 16.5.
So this is trading at a 50% discount to market PE then Wink thats even confirms KGAL is undervalued..

yes;

what ever method KGAL is undervalue. rendeer

14Lowest P/E companies in each sector... Empty whats p/E on Tue Apr 12, 2011 11:10 am

ssb

ssb
Manager - Equity Analytics
Manager - Equity Analytics
whats P/E
sorry im new to stock market and willing to learn

15Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Tue Apr 12, 2011 12:40 pm

2011_NewComer

2011_NewComer
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@ssb wrote:whats P/E
sorry im new to stock market and willing to learn

Some terms you'll come across

EPS - Earnings per Share

net profit after taxes - preferred dividends
EPS = ----------------------------------------------
number of common shares outstanding

P/E - Price Earnings Ratio

market price of common stock
P/E = -------------------------------
EPS

Book Value per Share - A measure of stockholder's equity. It represents the difference between total assets and total liabilities.

PBV - Price to Book Ratio

market price of common stock
PBV = --------------------------------
book value per share

Ref - http://www.thecorys.com/babs/key_financial_ratios.htm

Do a Google search, you can learn more Smile

This pdf was helpful for me as a beginner...got it from this forum.
http://www.sharewadi.com/downloads/Introduction-to-Fundamental-Analysis-1-ARTC.pdf

16Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Tue Apr 12, 2011 12:45 pm

2011_NewComer

2011_NewComer
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Akalanka wrote:thanks Laughing

have another q. .. Idea

how should i know the sector PE and like to know from wher i can have details of EPS, , ,

Regarding sector PE - http://forum.srilankaequity.com/t2226-latest-sector-p-e

Values like EPS, I think you can get from that comapny's financial statements.

Smile

17Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Tue Apr 12, 2011 12:51 pm

amateur


Equity Analytic
Equity Analytic
i have RENU bought at 415,will this rise in recent time?

18Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Tue Apr 12, 2011 1:24 pm

ssb

ssb
Manager - Equity Analytics
Manager - Equity Analytics
@2011_NewComer wrote:
@ssb wrote:whats P/E
sorry im new to stock market and willing to learn

Some terms you'll come across

EPS - Earnings per Share

net profit after taxes - preferred dividends
EPS = ----------------------------------------------
number of common shares outstanding

P/E - Price Earnings Ratio

market price of common stock
P/E = -------------------------------
EPS

Book Value per Share - A measure of stockholder's equity. It represents the difference between total assets and total liabilities.

PBV - Price to Book Ratio

market price of common stock
PBV = --------------------------------
book value per share

Ref - http://www.thecorys.com/babs/key_financial_ratios.htm

Do a Google search, you can learn more Smile

This pdf was helpful for me as a beginner...got it from this forum.
http://www.sharewadi.com/downloads/Introduction-to-Fundamental-Analysis-1-ARTC.pdf




thankx buddy I love you I love you I love you I love you

19Lowest P/E companies in each sector... Empty Re: Lowest P/E companies in each sector... on Tue Apr 12, 2011 1:30 pm

kuk83

kuk83
Manager - Equity Analytics
Manager - Equity Analytics
@ssb wrote:whats P/E
sorry im new to stock market and willing to learn

http://www.bartleetstock.com/research/investor_info.htm#ratio

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