Is Swiss Prime Site (VTX:SPSN) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Has the Swiss Real Estate Sector valuation changed over the past few years?
|Thu, 09 Dec 2021||CHF27.3b||CHF3.1b||CHF2.4b||12.7x|
|Sat, 06 Nov 2021||CHF27.9b||CHF3.1b||CHF2.4b||12.6x|
|Mon, 04 Oct 2021||CHF27.2b||CHF3.1b||CHF2.4b||12.3x|
|Wed, 01 Sep 2021||CHF28.7b||CHF3.1b||CHF2.5b||14x|
|Thu, 08 Jul 2021||CHF27.2b||CHF3.1b||CHF2.5b||13.6x|
|Wed, 31 Mar 2021||CHF26.5b||CHF3.2b||CHF2.1b||14.5x|
|Sat, 02 Jan 2021||CHF26.6b||CHF3.2b||CHF1.9b||15x|
|Tue, 06 Oct 2020||CHF25.0b||CHF3.3b||CHF1.8b||15.5x|
|Fri, 10 Jul 2020||CHF24.7b||CHF3.3b||CHF1.7b||15.5x|
|Thu, 02 Apr 2020||CHF25.2b||CHF3.3b||CHF1.9b||13.6x|
|Sun, 05 Jan 2020||CHF28.0b||CHF3.3b||CHF2.0b||13.8x|
|Wed, 09 Oct 2019||CHF25.9b||CHF3.2b||CHF1.8b||14.6x|
|Tue, 02 Jul 2019||CHF23.1b||CHF3.2b||CHF1.8b||13.1x|
|Fri, 05 Apr 2019||CHF23.0b||CHF3.2b||CHF1.6b||15.1x|
|Mon, 07 Jan 2019||CHF21.2b||CHF3.2b||CHF1.4b||15.5x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 14.5x. However, future earnings are expected to decline by 17% which could potentially cause the PE ratio to fall below its historical average.
Past Earnings Growth: The earnings for companies in the Real Estate industry have grown 20% per year over the last three years, while revenues have remained mostly flat. This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Which industries have driven the changes within the Swiss Real Estate sector?
Industry PE: Investors are most optimistic about the Real Estate industry even though it's trading below its 3-year average PE ratio of 14.5x. However analysts are expecting annual earnings decline of 17%, which is lower than the prior year's growth of 41% per year. So the market might believe that analysts are underestimating future growth or they expect the Real Estate industry's earnings to deteriorate the least compared to other industries.
Forecasted Growth: Despite it being negative, analysts are least pessimistic on the Real Estate industry since they expect its earnings to decline by only 17% per year over the next 5 years, which isn't as bad as the other industries. However, this is a reversal from its past annual earnings growth rate of 41% per year.
Which companies have driven the market over the last 7 days?
PSP Swiss Property
Swiss Prime Site
Fundamenta Real Estate
HIAG Immobilien Holding
Zug Estates Holding
Peach Property Group
SF Urban Properties