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Property Stocks – A good time to look into?

Questions › Category: Valuation Quadrant › Property Stocks – A good time to look into?
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WP asked 5 years ago

Hi, 
With the recent cooling measures imposed, the property and bank stocks are hit quite hard. 
For instance CapitaLand is down by almost 6% since previous trading price and have a price to book at 0.66. 
Do you use price to book to determine its fair value?
I am of the opinion that the market is experiencing a knee jerk reaction on the cooling measures.
 
thank you. 

Jieren Zheng replied 5 years ago

Just sharing my thoughts, considering Capitaland is a property developer, so it is asset heavy, price to book ratio would be a good metric.

Victor Chng replied 5 years ago

Thanks JR

Jieren Zheng replied 5 years ago

Welcome :)

WP replied 5 years ago

Thanks JR

Jieren Zheng replied 5 years ago

Welcome :)

1 Answers
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Victor Chng answered 5 years ago

Hi WP,
 
As what Jieren had mentioned, PB ratio is the appropriate ratio. The cooling measure had just started and there is a lagging effect to it.