New Zealand markets close in 4 hours 29 minutes
  • NZX 50

    12,186.01
    +33.85 (+0.28%)
     
  • NZD/USD

    0.6480
    -0.0023 (-0.35%)
     
  • NZD/EUR

    0.5936
    +0.0029 (+0.48%)
     
  • ALL ORDS

    7,726.30
    -2.20 (-0.03%)
     
  • ASX 200

    7,509.20
    -2.40 (-0.03%)
     
  • OIL

    75.91
    +0.03 (+0.04%)
     
  • GOLD

    1,926.60
    -4.20 (-0.22%)
     
  • NASDAQ

    12,803.14
    +440.04 (+3.56%)
     
  • FTSE

    7,820.16
    +59.05 (+0.76%)
     
  • Dow Jones

    34,053.94
    -39.02 (-0.11%)
     
  • DAX

    15,509.19
    +328.45 (+2.16%)
     
  • Hang Seng

    21,958.36
    -113.82 (-0.52%)
     
  • NIKKEI 225

    27,402.05
    +55.17 (+0.20%)
     
  • NZD/JPY

    83.3470
    -0.4180 (-0.50%)
     

At RM0.49, Is It Time To Put Sime Darby Property Berhad (KLSE:SIMEPROP) On Your Watch List?

While Sime Darby Property Berhad (KLSE:SIMEPROP) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the KLSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Sime Darby Property Berhad’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Sime Darby Property Berhad

Is Sime Darby Property Berhad Still Cheap?

Sime Darby Property Berhad is currently expensive based on my price multiple model, where I look at the company's price-to-earnings ratio in comparison to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Sime Darby Property Berhad’s ratio of 16.33x is above its peer average of 9.54x, which suggests the stock is trading at a higher price compared to the Real Estate industry. But, is there another opportunity to buy low in the future? Since Sime Darby Property Berhad’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Sime Darby Property Berhad?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 45% over the next couple of years, the future seems bright for Sime Darby Property Berhad. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? SIMEPROP’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe SIMEPROP should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. 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 SIMEPROP for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for SIMEPROP, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Diving deeper into the forecasts for Sime Darby Property Berhad mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Sime Darby Property Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here