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Is CSE over heated? Market PE 20.02 times

+4
MARKETWATCH2
kumarweerarathne
indi009
dineshfernando
8 posters

Go down  Message [Page 1 of 1]

dineshfernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Looking at the market PE of 20.02 times (As per Asha Phillips Market update on 10/10/14) one can think that CSE is over valued and over heated. But it is the right time to go for shares which trade below PE 10 times so in case of a severe market correction you are least affected.

Below I list some shares which are very attractive at current prices and trading at a PE less than 10 times. (PE information obtained from Asha Phillips valuation guide dated 07/10/2014.

1) ASIY - PE 7.15
2) CINV - PE 7.38
3) ESL - PE 6.27
4) CFVF - PE 7.67
5) LIOC - PE 5.18
6) VFIN - PE 7.40
7) LFIN - PE 6.55


All the above shares have lots of potential to go up and it's justified based on their earnings.
Please avoid shares with very high PE since the values are not justifiable. Especially avoid all the palm oil companies as they trade over PE 100 times. They are the main culprits for a higher market PE.

I have attached the valuation guide for your reference and knowledge. Please let us build a healthy market and buy shares based on the fundamental values.
Attachments
Is CSE over heated? Market PE 20.02 times AttachmentVALUATION GUIDE 7th October 2014.pdf
Valuation guide 7th Oct 2014
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indi009

indi009
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

i JUST don't understad why you go for CINV when WAPO is trading at PE 2.38
scratch scratch scratch

kumarweerarathne

kumarweerarathne
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

See these as well,
LIOC _ PE-5.18
SDB _ PE -6.89 PBV-0.84
VONE- PE-6.63 PBV-0.82
KAPI- PE-5.71

dineshfernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Sorry. For investment trusts most important valuation method is based on NAV or PBV.

PBV for WAPO 1.82 times
PBV for CINV 0.83 times.

Hence CINV is very attractive compared to WAPO.
WAPO's EPS is high due to an exceptional gain through the disposal of EXPO holdings which will not repeat.

MARKETWATCH2


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

dineshfernando wrote:Looking at the market PE of 20.02 times (As per Asha Phillips Market update on 10/10/14) one can think that CSE is over valued and over heated. But it is the right time to go for shares which trade below PE 10 times so in case of a severe market correction you are least affected.

Below I list some shares which are very attractive at current prices and trading at a PE less than 10 times. (PE information obtained from Asha Phillips valuation guide dated 07/10/2014.

1) ASIY - PE 7.15
2) CINV - PE 7.38
3) ESL - PE 6.27
4) CFVF - PE 7.67
5) LIOC - PE 5.18
6) VFIN - PE 7.40
7) LFIN - PE 6.55


All the above shares have lots of potential to go up and it's justified based on their earnings.
Please avoid shares with very high PE since the values are not justifiable. Especially avoid all the palm oil companies as they trade over PE 100 times. They are the main culprits for a higher market PE.

I have attached the valuation guide for your reference and knowledge. Please let us build a healthy market and buy shares based on the fundamental values.

Vow nice one. Thank you very much for you valuations guide.

Other Lower P/e shares

TAFL 12.60
Dist 8.70
Soy 10.51
BFL 12.88
CTEA 15

Plantation sector P/E 6.3, power P/E 9.9,

Footwear and textiles P/E 194.9 Why is that?

Motor 9.40 Will budget increase vehicle duty?

Other sectors P/E 13

Hotels P/E over 50

Few sectors P/E around 20  

Time to make basket of attractive shares

kassachandi


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

ESL looks very attractive

SHARK aka TAH

SHARK aka TAH
Expert
Expert

dineshfernando wrote:Looking at the market PE of 20.02 times (As per Asha Phillips Market update on 10/10/14) one can think that CSE is over valued and over heated. But it is the right time to go for shares which trade below PE 10 times so in case of a severe market correction you are least affected.

Below I list some shares which are very attractive at current prices and trading at a PE less than 10 times. (PE information obtained from Asha Phillips valuation guide dated 07/10/2014.

1) ASIY - PE 7.15
2) CINV - PE 7.38
3) ESL - PE 6.27
4) CFVF - PE 7.67
5) LIOC - PE 5.18
6) VFIN - PE 7.40
7) LFIN - PE 6.55


All the above shares have lots of potential to go up and it's justified based on their earnings.
Please avoid shares with very high PE since the values are not justifiable. Especially avoid all the palm oil companies as they trade over PE 100 times. They are the main culprits for a higher market PE.

I have attached the valuation guide for your reference and knowledge. Please let us build a healthy market and buy shares based on the fundamental values.
Thanks

VISA


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Please correct me if I am wrong ?

PE in daily report is calculated on last audited accounts. Is this the norm for other markets also. i believe other markets are calculate pe on rolling basis on quarterly results. What is the PE on quarterly results.

zoozzoo


Manager - Equity Analytics
Manager - Equity Analytics

dineshfernando wrote:Looking at the market PE of 20.02 times (As per Asha Phillips Market update on 10/10/14) one can think that CSE is over valued and over heated. But it is the right time to go for shares which trade below PE 10 times so in case of a severe market correction you are least affected.

Below I list some shares which are very attractive at current prices and trading at a PE less than 10 times. (PE information obtained from Asha Phillips valuation guide dated 07/10/2014.

1) ASIY - PE 7.15
2) CINV - PE 7.38
3) ESL - PE 6.27
4) CFVF - PE 7.67
5) LIOC - PE 5.18
6) VFIN - PE 7.40
7) LFIN - PE 6.55


All the above shares have lots of potential to go up and it's justified based on their earnings.
Please avoid shares with very high PE since the values are not justifiable. Especially avoid all the palm oil companies as they trade over PE 100 times. They are the main culprits for a higher market PE.

I have attached the valuation guide for your reference and knowledge. Please let us build a healthy market and buy shares based on the fundamental values.

thanks

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