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09-06-2013, 06:24 PM
(This post was last modified: 09-06-2013, 06:24 PM by felixleong.)
http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#
at the current 13 times earnings and 2.5% yield do you guys think that the STI ETF is undervalued as compared to a historical average of 15 times?
If not, what would be a comfortable entry?
12 times or 10 times earnings?
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09-06-2013, 06:52 PM
(This post was last modified: 09-06-2013, 06:54 PM by felixleong.)
Yeah seems very confusing why all of them giving different PE
but if at the end of the day if you are putting money into purchasing an index then the PE given by the fund should be considered.
(09-06-2013, 06:21 PM)freedom Wrote: (09-06-2013, 06:15 PM)Temperament Wrote: (09-06-2013, 06:10 PM)freedom Wrote: I wonder which stock or stocks are trading below PE of 13 within STI.
I don't remember anyone(maybe SembCorp?). I don't count property stocks as their earnings are too erratic.
Sorry! i am speaking off-hand without backing with facts. That's why i give myself some leeway. i am saying maybe only.
nothing to be sorry of.
I was curious about the chart provided earlier. The PE of STI was around 13. I wonder which of the 30 are trading below 13 since all those yield stocks such as Singtel/Starhub/ST Engg/SIA Engg/SPH etc are traded far above PE of 13.
The 3 local banks make out about 30% of the index, they each trade below 13 times earnings I think.
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its because the Sti is market cap weighted
meaning the larger the size of company the heavier its weighted in the index
the top 6 counters alone make up about half the index already
they are the 3 locals banks + Singtel +Kep corp + Jardine Matheson = 50% of sti index