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23-10-2013, 12:09 AM
i think the current price is fair...
i agree with a post from a sifu somewhere in this thread that it's not appropriate to value Haw Par with a mark-to-market valuation due to its conglomerate nature... discount is always there...
looking at its P/B chart after 2008 crises, price of Haw Par has been trading at 20-50% discount to its book value... which means if its BVPS is growing at 5% annually, the 1Y target price would be between 5.6 to 9 SGD... about 20% upside and downside...
the difficult part is to identify the probability of downside vs upside and the catalysts that would make the stocks trade at higher/lower discount....
i agree with a post from a sifu somewhere in this thread that it's not appropriate to value Haw Par with a mark-to-market valuation due to its conglomerate nature... discount is always there...
looking at its P/B chart after 2008 crises, price of Haw Par has been trading at 20-50% discount to its book value... which means if its BVPS is growing at 5% annually, the 1Y target price would be between 5.6 to 9 SGD... about 20% upside and downside...
the difficult part is to identify the probability of downside vs upside and the catalysts that would make the stocks trade at higher/lower discount....