An Intrinsic Calculation For Singapore Telecommunications Limited (SGX:Z74) Suggests It's 33% Undervalued
May 31
Singaporean (SGX) Market Analysis & Valuation
UpdatedJun 01, 2023
DataAggregated Company Financials
Companies562
- 7D-1.8%
- 3M-2.4%
- 1Y-5.9%
- YTD-3.0%
Over the last 7 days, the market has dropped 1.8%, driven by a decline of 2.9% in the Industrials sector. The market has dropped 5.9% in the last year. As for the next few years, earnings are expected to grow by 6.5% per annum.
Trending IndustriesOil and Gas
Market Valuation and Performance
Has the Singaporean Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 01 Jun 2023 | S$678.6b | S$581.1b | S$56.9b | 11.3x | 11.9x | 1.2x |
| Sat, 29 Apr 2023 | S$705.8b | S$570.7b | S$53.9b | 11.6x | 13.1x | 1.2x |
| Mon, 27 Mar 2023 | S$603.5b | S$558.7b | S$48.1b | 11.1x | 12.5x | 1.1x |
| Wed, 22 Feb 2023 | S$712.0b | S$560.7b | S$58.1b | 10.7x | 12.3x | 1.3x |
| Fri, 20 Jan 2023 | S$707.5b | S$559.9b | S$58.2b | 10.4x | 12.2x | 1.3x |
| Sun, 18 Dec 2022 | S$699.6b | S$563.5b | S$57.9b | 10.2x | 12.1x | 1.2x |
| Tue, 15 Nov 2022 | S$699.7b | S$563.8b | S$57.8b | 10.3x | 12.1x | 1.2x |
| Thu, 13 Oct 2022 | S$666.9b | S$564.7b | S$54.8b | 10.1x | 12.2x | 1.2x |
| Sat, 10 Sep 2022 | S$715.3b | S$560.8b | S$54.8b | 10.8x | 13.1x | 1.3x |
| Mon, 08 Aug 2022 | S$721.3b | S$542.2b | S$50.4b | 11.4x | 14.3x | 1.3x |
| Wed, 06 Jul 2022 | S$685.4b | S$533.0b | S$47.6b | 11.3x | 14.4x | 1.3x |
| Fri, 03 Jun 2022 | S$701.6b | S$528.5b | S$47.9b | 12x | 14.6x | 1.3x |
| Sun, 01 May 2022 | S$739.1b | S$526.6b | S$46.3b | 12.2x | 16x | 1.4x |
| Tue, 29 Mar 2022 | S$735.7b | S$524.1b | S$45.6b | 12x | 16.1x | 1.4x |
| Thu, 24 Feb 2022 | S$724.8b | S$495.4b | S$36.5b | 12.8x | 19.9x | 1.5x |
| Sat, 22 Jan 2022 | S$708.5b | S$482.2b | S$31.4b | 13.3x | 22.5x | 1.5x |
| Mon, 20 Dec 2021 | S$677.7b | S$484.1b | S$31.2b | 13x | 21.7x | 1.4x |
| Wed, 17 Nov 2021 | S$726.3b | S$486.8b | S$30.7b | 13.5x | 23.6x | 1.5x |
| Fri, 15 Oct 2021 | S$714.7b | S$480.3b | S$25.0b | 13.3x | 28.6x | 1.5x |
| Sun, 12 Sep 2021 | S$683.2b | S$479.9b | S$24.4b | 13.8x | 28x | 1.4x |
| Tue, 10 Aug 2021 | S$705.2b | S$481.6b | S$24.0b | 13.9x | 29.4x | 1.5x |
| Mon, 03 May 2021 | S$733.0b | S$458.1b | S$16.3b | 15x | 45.1x | 1.6x |
| Thu, 04 Feb 2021 | S$673.2b | S$435.8b | S$10.1b | 15.4x | 66.4x | 1.5x |
| Sun, 08 Nov 2020 | S$573.0b | S$449.0b | S$18.1b | 13.6x | 31.7x | 1.3x |
| Sat, 01 Aug 2020 | S$580.8b | S$460.7b | S$25.9b | 13.3x | 22.4x | 1.3x |
Price to Earnings Ratio
14.8x
Current Market PE
- Investors are pessimistic on the Singaporean market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 11.9x which is lower than its 3-year average PE of 25.8x.
Past Earnings Growth
- The earnings for Singaporean listed companies have grown 14% per year over the last three years.
- Revenues for these companies have grown 6.4% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Singaporean Market?
| SG Market | -1.80% | |
| Utilities | 1.33% | |
| Tech | 1.26% | |
| Consumer Discretionary | -0.17% | |
| Materials | -0.68% | |
| Financials | -1.19% | |
| Real Estate | -1.72% | |
| Consumer Staples | -2.58% | |
| Energy | -2.59% | |
| Telecom | -2.74% | |
| Healthcare | -2.86% | |
| Industrials | -2.91% | |
Sector PE
- Investors favour the Consumer Discretionary sector the most for future growth which is trading above its 3-year average PE ratio.
- The market's confidence is likely because analysts are expecting annual earnings growth of 19.5%, which is higher than its past year's earnings growth of 5.7% per year.
- The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 6.8x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Discretionary sector, expecting annual earnings growth of 20% over the next 5 years.
- This is better than its past earnings growth rate of 5.7% per year.
- In contrast, the Real Estate sector is expected to see its earnings grow by 3.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| O39 Oversea-Chinese Banking | S$12.27 | 0.6% +S$301.5m | 3.0% | PB1x | Financials | |
| U96 Sembcorp Industries | S$5.03 | 3.1% +S$268.2m | 77.7% | PE12.8x | Utilities | |
| U11 United Overseas Bank | S$27.95 | 0.4% +S$193.1m | -3.8% | PB1.2x | Financials | |
| G13 Genting Singapore | S$1.01 | 1.0% +S$120.7m | 27.8% | PE35.9x | Consumer Discretionary | |
| AWX AEM Holdings | S$3.60 | 11.8% +S$117.4m | -20.2% | PE10.9x | Tech |
Market Insights
The best luxury goods are typically “better quality” than their cheaper counterparts in the sense that they are more durable...
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