Jollibee Foods Corp. looks the most expensive among 37 stocks in the Philippines tracked by at least three analysts, data from Thomson Reuters StarMine shows.
The fast-food firm has an Intrinsic Valuation score of 7, the lowest among the firms tracked.
At Monday's close of P104.6, the stock trades 52 percent higher than the intrinsic value of 68.90, as calculated by StarMine.
Its Forward 12M P/E is 28.4 against its 10-year median of 16.9. Its price-to-book value is 4.9 against the peer average of 2.4.
Analysts have cut their EPS estimates on the firm by 1.3 percent over the last month, for the year ending 2012.
Four out of eight analysts tracking the stock have strong sell or sell recommendations, three have a hold and one has a buy rating.
The stock is up almost 15 percent year-to-date while the broader index is up nearly 12 percent for the same period.
Six different ratio
StarMine's Relative Valuation model combines six different ratios that measure a company's valuation and then ranks it compared with all other stocks in the same region. The lower the RV, the more expensive the stock.
On its Intrinsic Valuation model, StarMine adjusts for the usually optimistic bias in analysts' EPS forecasts and uses the resulting growth rate and dividends to determine the valuation. - Reuters
Tuesday, June 05, 2012
Jollibee Foods looks expensive on valuations