Frasers Property (formerly: Frasers Cpt (FCL))

[felixleong]

I read that FNN is now trading at around 30 times earnings.
I think after the split the market is now overvaluing FNN and undervaluing FCL.

The last closed price of F&N was $3.47, base on FY2013's PBIT of about $220 mil, i.e. 15 cents per share, the P/PBIT is around 23.

If the capital reduction of 42 cents is excluded from the market price, the P/PBIT is about 20.

Is F&N undervalue? I am not so sure...

(vested)

I see thanks for the info, sorry my numbers may be wrong then.
I normally use net profits, don't really use PBIT.

As for valuing FNN it really depends on how you view it.

For myself I think at 30 times earnings it would be expensive,
but if its trading at 20 times or less earnings could be considered a buy given its strong business moat and growth potential.