Valuation:
(1) Relative value to competitors: price to earnings, sales, and book value:
Name | RIC | PE | Est. PE | EPS (MYR) | DPS (MYR) | Payout | Div Yld % | ROE % | P/Book | P/Sales | Market Cap - USD |
LMC | LMCE.KL | 19.50 | 19.06 | 0.35 | 0.34 | 98% | 4.93 | 9.57 | 1.90 | 2.52 | 1,891,256,612.90 |
YTL CEMENT | YTLC.KL | 9.79 | 7.56 | 0.47 | 0.13 | 28% | 2.85 | 14.84 | 1.25 | 1.23 | 733,726,709.68 |
Tasek Corp | TKCS.KL | 8.80 | 9.41 | 0.83 | 0.35 | 42% | 4.46 | 14.15 | 1.04 | 1.77 | 312,641,496.77 |
Cahya Mata | CMSM.KL | 6.41 | 8.54 | 0.20 | 0.05 | 25% | 2.45 | 5.01 | 0.51 | 0.73 | 216,819,754.84 |
Steppe Cement | STCM.L | - | 27.81 | -0.02 | 0.00 | 0% | 0.00 | -3.00 | 0.80 | 1.37 | 99,549,060.00 |
LMCE’s PE, Payout ratio, Dividend yield and P/Book is better than competitors. Looking only at the P/Sales, LMCE seems to be relatively overvalued. Historical P/S of LMCE along with its closest competitor, YTL cements, as shown below, shows that the relative assumption on overvalue of LMCE:
31-Dec-10 | 31-Dec-09 | 31-Dec-08 | 31-Dec-07 | 31-Dec-06 | |
YTL Stock price | 4.76 | 4.28 | 2.35 | 5 | 4 |
YTL % change | 11% | 82% | -53% | 25% | 74% |
LMCE Stock price | 7.67 | 6.25 | 3.94 | 5.85 | 4.6 |
LMCE % change | 23% | 59% | -33% | 27% | 124% |
YTL P/S TTM | 1.21 | 1.41 | 1.05 | 2.86 | 1.82 |
LMCE P/S TTM | 2.80 | 2.14 | 1.32 | 3.68 | 2.12 |
The high P/B coupled with low ROE also indicates that LMCE could be overvalued.
