Yahoo Finance Is There Now An Opportunity In Singapore Press Holdings Limited (SGX:T39)?
Singapore Press Holdings Limited (SGX:T39), a media company based in Singapore, saw significant share price volatility over the past couple of months on the SGX, rising to the highs of SGD2.77 and falling to the lows of SGD2.44. 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 Singapore Press Holdings’s current trading price of SGD2.57 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 Singapore Press Holdings’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 Singapore Press Holdings
What is Singapore Press Holdings worth?
According to my valuation model, the stock is currently overvalued by about 44.57%, trading at S$2.57 compared to my intrinsic value of SGD1.78. This means that the buying opportunity has probably disappeared for now. Another thing to keep in mind is that Singapore Press Holdings’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Singapore Press Holdings look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Singapore Press Holdings, at least in the near future.
What this means for you:
Are you a shareholder? If you believe T39 is currently trading above its value, 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 tabs on T39 for some time, 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 track record of its management. 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 Singapore Press Holdings. You can find everything you need to know about Singapore Press Holdings in the latest infographic research report. If you are no longer interested in Singapore Press Holdings, 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.
