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QuestionsCategory: Valuation QuadrantValuation for reits
Jun Song Lim asked 3 years ago
For valuation of whether REITS are overvalue and undervalue do we just used net asset value or the other variables
like P/E ratio, P/B ratio etc, are also important?Because REIT is a property investment, I don't think they have
price to sales ratio(they earn through rental income and not sales).
1 Answers
Victor Chng answered 3 years ago

Hi Jun Song,
 
Do note that the method in investment quadrant is not suitable to anaylse REITs as they required different type of ratio and analysis. 
 
On the valuation part, you can use PB for REITs.