Singapore Technologies Engineering Ltd

OTCPK:SGGK.Y Stock Report

Market Cap: US$10.6b

Singapore Technologies Engineering Valuation

Is SGGK.Y 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 SGGK.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SGGK.Y ($35.8) is trading below our estimate of fair value ($54.56)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SGGK.Y?

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

The above table shows the Price to Earnings ratio for SGGK.Y. This is calculated by dividing SGGK.Y's market cap by their current earnings.
What is SGGK.Y's PE Ratio?
PE Ratio22.2x
EarningsS$642.38m
Market CapS$14.27b

Price to Earnings Ratio vs Peers

How does SGGK.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for SGGK.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.8x
WWD Woodward
28.2x6.2%US$10.5b
BWXT BWX Technologies
43.9x10.2%US$12.2b
CW Curtiss-Wright
34.6x5.6%US$14.1b
DRS Leonardo DRS
48.4x20.9%US$9.6b
SGGK.Y Singapore Technologies Engineering
22.2x11.8%US$14.3b

Price-To-Earnings vs Peers: SGGK.Y is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (38.8x).

Price to Earnings Ratio vs Industry

How does SGGK.Y's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
2.8xn/aUS$48.62m
ETCC Environmental Tectonics
4.9xn/aUS$31.14m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
SGGK.Y 22.2xIndustry Avg. 35.1xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SGGK.Y is good value based on its Price-To-Earnings Ratio (22.2x) compared to the US Aerospace & Defense industry average (35.1x).

Price to Earnings Ratio vs Fair Ratio

What is SGGK.Y'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.

SGGK.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SGGK.Y's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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