Yanlord Land Group Limited (SGX:Z25), a real estate management and development company based in Singapore, saw significant share price volatility over the past couple of months on the SGX, rising to the highs of SGD1.92 and falling to the lows of SGD1.56. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Yanlord Land Group’s current trading price of SGD1.6 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Yanlord Land Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Yanlord Land Group
What is Yanlord Land Group worth?
Good news, investors! Yanlord Land Group is still a bargain right now. In this instance, I’ve used the price-to-equity (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Yanlord Land Group’s ratio of 4.2x is below its peer average of 10.6x, which suggests the stock is undervalued compared to the real estate management and development industry. Another thing to keep in mind is that Yanlord Land Group’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What kind of growth will Yanlord Land Group generate?
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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Yanlord Land Group’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since Yanlord Land Group is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.