Singapore Technologies Engineering Ltd

SGX:S63 Stock Report

Market Cap: S$14.1b

Singapore Technologies Engineering Valuation

Is S63 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of S63 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S63 (SGD4.53) is trading below our estimate of fair value (SGD7.01)

Significantly Below Fair Value: S63 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S63?

Key metric: As S63 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for S63. This is calculated by dividing S63's market cap by their current earnings.
What is S63's PE Ratio?
PE Ratio22x
EarningsS$642.38m
Market CapS$14.11b

Price to Earnings Ratio vs Peers

How does S63's PE Ratio compare to its peers?

The above table shows the PE ratio for S63 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.5x
C07 Jardine Cycle & Carriage
7.8x2.9%S$11.1b
BS6 Yangzijiang Shipbuilding (Holdings)
11.2x15.2%S$11.3b
J36 Jardine Matheson Holdings
146.8x44.5%US$11.7b
BN4 Keppel
16.3x11.6%S$12.1b
S63 Singapore Technologies Engineering
22x11.9%S$14.1b

Price-To-Earnings vs Peers: S63 is good value based on its Price-To-Earnings Ratio (22x) compared to the peer average (45.5x).

Price to Earnings Ratio vs Industry

How does S63's PE Ratio compare vs other companies in the Asian Aerospace & Defense Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
S63 22.0xIndustry Avg. 50.8xNo. of Companies12PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: S63 is good value based on its Price-To-Earnings Ratio (22x) compared to the Asian Aerospace & Defense industry average (50.8x).

Price to Earnings Ratio vs Fair Ratio

What is S63's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

S63 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: S63 is expensive based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst S63 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentS$4.53
S$5.02
+10.7%
5.5%S$5.40S$4.45n/a13
Dec ’25S$4.50
S$5.02
+11.5%
5.5%S$5.40S$4.45n/a13
Nov ’25S$4.54
S$5.00
+10.1%
4.2%S$5.32S$4.66n/a13
Oct ’25S$4.64
S$4.98
+7.2%
3.8%S$5.32S$4.66n/a13
Sep ’25S$4.45
S$4.94
+11.1%
3.0%S$5.20S$4.66n/a13
Aug ’25S$4.42
S$4.69
+6.1%
5.9%S$5.20S$4.20n/a13
Jul ’25S$4.29
S$4.54
+5.7%
4.4%S$4.90S$4.20n/a13
Jun ’25S$4.18
S$4.51
+8.0%
4.6%S$4.90S$4.20n/a13
May ’25S$4.03
S$4.41
+9.4%
5.9%S$4.80S$3.76n/a13
Apr ’25S$4.02
S$4.41
+9.6%
5.9%S$4.80S$3.76n/a13
Mar ’25S$3.97
S$4.40
+10.9%
5.9%S$4.80S$3.76n/a13
Feb ’25S$3.74
S$4.33
+15.8%
5.7%S$4.72S$3.76n/a13
Jan ’25S$3.89
S$4.31
+10.9%
5.6%S$4.72S$3.76n/a13
Dec ’24S$3.73
S$4.31
+15.7%
5.6%S$4.72S$3.76S$4.5013
Nov ’24S$3.78
S$4.23
+11.8%
9.4%S$4.73S$3.15S$4.5413
Oct ’24S$3.91
S$4.23
+8.1%
9.4%S$4.73S$3.15S$4.6413
Sep ’24S$3.81
S$4.18
+9.8%
9.4%S$4.73S$3.15S$4.4512
Aug ’24S$3.76
S$4.01
+6.6%
9.7%S$4.60S$3.15S$4.4212
Jul ’24S$3.68
S$4.00
+8.7%
9.6%S$4.60S$3.15S$4.2912
Jun ’24S$3.65
S$4.00
+9.6%
9.6%S$4.60S$3.15S$4.1812
May ’24S$3.62
S$4.02
+11.0%
9.3%S$4.60S$3.15S$4.0313
Apr ’24S$3.66
S$4.02
+10.0%
9.4%S$4.60S$3.15S$4.0214
Mar ’24S$3.51
S$4.07
+15.9%
7.4%S$4.60S$3.26S$3.9714
Feb ’24S$3.71
S$4.12
+11.1%
8.6%S$4.74S$3.26S$3.7414
Jan ’24S$3.35
S$4.12
+23.1%
8.6%S$4.74S$3.26S$3.8914
Dec ’23S$3.46
S$4.17
+20.4%
9.3%S$4.74S$3.26S$3.7314

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 21:12
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Singapore Technologies Engineering Ltd is covered by 25 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Aaron HoCFRA Equity Research
Thanapol JiratanakijCGS International
Jame OsmanCitigroup Inc