Calculating The Intrinsic Value Of EPP N.V. (JSE:EPP)
In this article we are going to estimate the intrinsic value of EPP N.V. ( JSE:EPP ) by taking the expected future cash...
Has the South African Real Estate Industry valuation changed over the past few years?
|Tue, 30 Nov 2021||R91.4b||R19.7b||R3.6b||6.3x|
|Thu, 28 Oct 2021||R92.6b||R18.8b||R2.6b||9.2x|
|Sat, 25 Sep 2021||R95.9b||R18.3b||R2.5b||15.1x|
|Mon, 23 Aug 2021||R93.7b||R17.9b||R1.7b||14x|
|Sat, 10 Jul 2021||R91.2b||R17.9b||R1.7b||14.8x|
|Fri, 02 Apr 2021||R83.7b||R18.4b||-R2,055,763,557.25||12.7x|
|Mon, 04 Jan 2021||R81.6b||R19.3b||-R5,303,659,307.30||6.8x|
|Thu, 08 Oct 2020||R61.5b||R21.2b||-R2,574,619,354.45||4.7x|
|Wed, 01 Jul 2020||R77.2b||R21.6b||R140.2m||53.3x|
|Sat, 04 Apr 2020||R64.5b||R22.3b||R6.2b||9.7x|
|Tue, 07 Jan 2020||R111.5b||R19.4b||R10.2b||9.7x|
|Mon, 30 Sep 2019||R114.0b||R20.0b||R9.9b||9.8x|
|Thu, 04 Jul 2019||R115.4b||R19.7b||R8.5b||14.4x|
|Sun, 07 Apr 2019||R107.9b||R19.9b||R8.4b||12.2x|
|Wed, 09 Jan 2019||R104.2b||R20.0b||R7.7b||12.7x|
Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 6.3x which is lower than its 3-year average PE of 14.1x. It appears they believe that earnings will not grow as fast as they have historically.
Past Earnings Growth: The earnings for companies in the Real Estate industry have grown 25% 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 South African Real Estate industry?
|Real Estate Development||-1.32%|
|Real Estate Operating Companies||-2.79%|
Industry PE: Investors are most optimistic about the Real Estate Operating Companies industry even though it's trading below its 3-year average PE ratio of 22.1x. However analysts are expecting annual earnings growth of 50%, which is lower than the prior year's growth of 359% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Real Estate Development industry, which is trading below its 3-year average of 20.8x.
Forecasted Growth: Analysts are most optimistic on the Real Estate Operating Companies industry, expecting annual earnings growth of 50% over the next 5 years. However this is lower than its past earnings growth rate of 359% per year.
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