Yahoo Finance Should You Buy Suntec Real Estate Investment Trust (SGX:T82U) At $1.78?
Suntec Real Estate Investment Trust (SGX:T82U), a reits company based in Singapore, saw significant share price volatility over the past couple of months on the SGX, rising to the highs of SGD1.98 and falling to the lows of SGD1.75. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Suntec Real Estate Investment Trust’s current trading price of SGD1.78 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Suntec Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Suntec Real Estate Investment Trust
What’s the opportunity in Suntec Real Estate Investment Trust?
According to my valuation model, the stock is currently overvalued by about 54%, trading at S$1.78 compared to my intrinsic value of SGD1.16. This means that the opportunity to buy Suntec Real Estate Investment Trust at a good price has disappeared! In addition to this, it seems like Suntec Real Estate Investment Trust’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Suntec Real Estate Investment Trust?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of Suntec Real Estate Investment Trust, it is expected to deliver a negative earnings growth of -6.97%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? If you believe T82U should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on T82U for a while, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Suntec Real Estate Investment Trust. You can find everything you need to know about Suntec Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in Suntec Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
