FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» FUTURE of BROWNS INVESTMENT PLC (BIL)
by Bakkabwoi Yesterday at 11:33 pm

» First capital holdings CFVF.N0000
by SL-INVESTOR Yesterday at 9:11 pm

» CONTRADICTARY statements BY BUYER & SELLER RE: MGT & GREG
by GHERATH72 Yesterday at 9:02 pm

» ACCESS ENGINEERING ( AEL.N )
by High-flyer Yesterday at 8:43 pm

» GLAS will be winner with Super Gain.
by Promoney Yesterday at 7:45 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by ADVENTUS Yesterday at 4:27 pm

» KGAL - THE SLEEPING GIANT
by Big Bull Yesterday at 2:28 pm

» NATIONAL DEVELOPMENT BANK PLC (NDB.N0000)
by shihan 93 Yesterday at 1:16 pm

» Sunshine holding future potential
by Zahara khan Yesterday at 12:43 pm

» hospital sector
by David VKMS Yesterday at 10:26 am

» Sri Lanka Bonds Go From Asia’s Worst to Best After China Loan
by CHRONICLE™ Yesterday at 7:27 am

» The market changes fast; it is OK to get out when you feel it is right and take the profits that you can. Stock market for beginners
by Asoka Samarakone Sun May 16, 2021 10:04 pm

» Ban of chemical fertilizers is a great news
by dayandacool Sun May 16, 2021 9:50 pm

» Economic Uncertainty Drives Crypto Growth in Sri Lanka
by CHRONICLE™ Sun May 16, 2021 9:23 pm

» DIPPED PRODUCTS PLC (DIPD.N0000)
by ADVENTUS Sun May 16, 2021 4:37 pm

» CSE listed companies...Failed or collapsed
by High-flyer Sat May 15, 2021 9:14 pm

» L B FINANCE PLC (LFIN.N0000)
by kanishkaecomm Sat May 15, 2021 5:17 pm

» කොටස් වෙළඳපොළ2020
by කොටස් වෙළඳපොළ2020 Sat May 15, 2021 11:52 am

» 14 May onwards -Road Clear to Enter one of the Asias Most Undervalued Stock Market
by kalu351 Sat May 15, 2021 6:34 am

» Plantation Sector
by කොටස් වෙළඳපොළ2020 Fri May 14, 2021 10:13 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Why Sector PER used to calculate the market price

Why Sector PER used to calculate the market price

Go down  Message [Page 1 of 1]

BullionStock

BullionStock
Senior Equity Analytic
Senior Equity Analytic
I have reviewed most of technical calculation of share valuations and noted that everybody use sector PER to get the market price .

We calculate EPS with specific share . but why we use Sector PER finally to calculate the price .

Some sectors , only very few companies maintain low PER values. But when it comes to calculations we use higher sector PER .

Is this fair enough such calculation & how do you justify the accuracy of this kind of valuation?

KDS

KDS
Senior Equity Analytic
Senior Equity Analytic
sector wise PER is a average which guides us and tells us whether the company share price is lower or higher than what it should be. this is just a parameter to analyse the stock and its not the only parameter.

seyon


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Hi BullionStock

For Stock picking PER is an ideal tool to start After identifying companies which trade at low multiples and comparing with its sectors those shares may present an optimal investment opportunity. Now you would take the example CINV is trading in PE multiples of 7 times while GREG in the same sector trading at 75 times ( since the reason may be GREG is Speculative) . That is reason sector PE reflects 29 times as an average. Therefore If u value the share with sector PE it wont reflect the fair value...then you have to discount it to reflect the fair value.... CINV and GUAR are lowest PER in the sectors... therefore still there is chance the price to go up.....

You would compare the SECTOR PER and Market PER if ur selected companies are lowest PE multiples there is high chance the price to move up. provided that the companies should have growth and potential in the industry... since we should see the future growth rather than the past records...

Happy Trading

BullionStock

BullionStock
Senior Equity Analytic
Senior Equity Analytic
Thanks Seyon,

Where can I find the sector PER details ?

CINV is trading at 137
GUAR is trading at 260
GREG is trading at 87

Appreciate how you identify them with PE multiples 7 & 75 respectively ?









BullionStock

BullionStock
Senior Equity Analytic
Senior Equity Analytic
Seyon,

I just saw your post in CINV thread , Understand that CINV EPS is 22 after split..

Ok , yes 137/22= 7

So if the sector PER is around 28 or 29 , you discount the calculated value of 22X28=616

137/= is far below this value so we decide CINV is undervalue .

Correct me if my calculations are wrong.

Again pls let me know where I can find sector PER details .
Is it in cse.lk ?

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@BullionStock wrote:Seyon,

I just saw your post in CINV thread , Understand that CINV EPS is 22 after split..

Ok , yes 137/22= 7

So if the sector PER is around 28 or 29 , you discount the calculated value of 22X28=616

137/= is far below this value so we decide CINV is undervalue .

Correct me if my calculations are wrong.

Again pls let me know where I can find sector PER details .
Is it in cse.lk ?


BullionStock :
Current Share Price/ EPS Annulized = Current PE.

Yes, CINV is undervalued and a good share for medium term. But you need to know that Investment Share Holding Companies does not always trade with high PEs. RHL and COCO, CABO ( though they are primarily Land and Propery they are mostly Investment) etc trade at a lower PE in the current market though heavily undervalued.

You can get Current Sector PE by
1) goto Csel.lk
2) goto "Equity Market" at the top
3) goto Sector Wise Market summary.


Hoep this helps



Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum