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No right or wrong valuation, just whether more risk-adverse valuation method or the other, market will follow supply demand, just stick to your valuation and happy investing
Yes the eps is TTM. But giving PE20 for TTM is already accounting for forward eps growth.
RM5 share price is like PE30+ of TTM. At this kind of valuation, I can buy better global tech companies like TSMC, ASML, or Microsoft etc. No reason to touch Gamuda.
What TTM stands for? Gamuda doesn't worth PE of more than 20 due to mainly just a large size construction firm, goreng factor push up its share price to 4.60-5.00 3-4 weeks ago. Many follow technical analysis to buy n to sell n playing short term.. Above 4.20, the risk is quite high...
Kevin, TTM = trailing 12 months. Means past 4 qtrs. I woulnd't dare touch Nvidia, I think its valuation is too high. Usually for US stocks, when there is a dip, it would be a buying opportunity. The difference is US companies are holding all the technologies and their net margin is much higher at >20%, >30%. Whereas suncon the margin is not even 10%, and the recent share price rice was all mainly because the US tech sector decides to set up data centre here. They can decide to shift the investment to other countries also.
I think its ridiculous that things like suncon is trading at PE30. Whereas there are many manufacturing and food companies with steady profit only trading at PE10 or below.
I used to trade or invest in Bursa some time ago. But I found the effort not worth it and the valuation is all upside down because of factors like Govt/GLCs pushing only index or major stocks whereas there is lack of interest in the smaller manufacturing or food shares leading to them being heavily discounted.
Even if I invest all into just S&P index fund. This would also lead to better outcome than investing/trading in Bursa.
Basically, those goreng short term mostly don't bother much about fundamental analysis n many don't know much about fundamental analysis as well.. SunCon being pushed up due to the construction firm has grabbed many Data centers projects but in term of valuation, construction firm shouldnot have rich valuation of more than 18-19, for Gamuda, even though much larger but it is also too rich valuation if above 4.30 but local research houses like to give high TP to Gamuda, Sunway n SunCon...
