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QuestionsCategory: Valuation QuadrantChow Tai Fook, how to value? PE? PB? PCF?
alexyeo asked 2 years ago

Hi,
Recently I came across this HK jeweler, chow tai fook 1929. Large cap. Market leader in HK and is expanding into China.
Trading near its low price ranges and gives pretty high dividends. Though the dividend yield seemed to be boosted by special dividend payouts. Nevertheless, even if we take that away, normal dividend yield between 3-5% pa, ROE > 10%, net gearing below 50%. Family owned 89% stake. Strong branding among PRCs though the china jewelry market is still quite fragmented with no clear leaders.
It is being affected by HK protests which probably why share price is languishing.
Was wondering what would be a good method to value the company? PE? PB? or PCF? Seeking alternative opinions on this company. Thanks

1 Answers
Victor Chng answered 2 years ago

Hi Alex,
 
You can value them based on PB and PE