Skip Navigation Links
My view about CapitaLand
06 Jul 2020 (507 views)

CapitaLand is now trading at $3.05. It is a 19% drop from $3.75 on 1 Dec 2019. 

The price earning ratio (PE ratio) is now at 6.94 times and the forward dividend yield is 3.95%. The price to book is 0.61, indicating a discount of 39% from the asset value. These metrics suggest that CapitaLand represents good value.

The financials for the past three years (2017 to 2019) showed a healthy growth trend. The financial results for 2020 will be affected by the pandemic but the impact is not likely to be significant. 

Even if the profit were to drop by 20%, the PE ratio will increase to 8.3 times, which is low for a blue chip shares.

I have read the detailed report for the 1Q of 2020.
https://www.capitaland.com/content/dam/capitaland-sites/international/invest/assets/20200504%201Q2020%20Business%20Updates.pdf

I am generally encouraged by the report. The important China market is recovering. Singapore remains uncertain. This is why I am factoring in a possible drop of 20% in profit for 2020.

The financial results for the first half of 2020 will be due within the next few weeks. I hope that the results will be better than expected.

I have decided to buy an additional 30,000 shares in CapitaLand to add to my existing holdings of 30,000 shares. It will be a major investment for me. 

I hope that I make the right decision.
 


My view about CapitaLand
[Back] [Print]


CapitaLand is now trading at $3.05. It is a 19% drop from $3.75 on 1 Dec 2019. 

The price earning ratio (PE ratio) is now at 6.94 times and the forward dividend yield is 3.95%. The price to book is 0.61, indicating a discount of 39% from the asset value. These metrics suggest that CapitaLand represents good value.

The financials for the past three years (2017 to 2019) showed a healthy growth trend. The financial results for 2020 will be affected by the pandemic but the impact is not likely to be significant. 

Even if the profit were to drop by 20%, the PE ratio will increase to 8.3 times, which is low for a blue chip shares.

I have read the detailed report for the 1Q of 2020.
https://www.capitaland.com/content/dam/capitaland-sites/international/invest/assets/20200504%201Q2020%20Business%20Updates.pdf

I am generally encouraged by the report. The important China market is recovering. Singapore remains uncertain. This is why I am factoring in a possible drop of 20% in profit for 2020.

The financial results for the first half of 2020 will be due within the next few weeks. I hope that the results will be better than expected.

I have decided to buy an additional 30,000 shares in CapitaLand to add to my existing holdings of 30,000 shares. It will be a major investment for me. 

I hope that I make the right decision.