Friday, August 21, 2009

Update on PE and PTB ratios of STI


Latest update (20 Aug 09)
PE ratio of STI = 17.72

PTB ratio of STI = 1.79

Click to see a detail explanation on how to calculate PE ratio of STI
Click to see a detail explanation on how to calculate PTB ratio of STI

12 comments:

Data said...

Hi Mike, thanks for your update and the earlier great post on finding the PE ratio of the STI. Just wondering if this latest update accounts for the change in the STI's composition in March i.e. Comfort DelGro and SMRT in and Keppel Land and Yanlord out. Thanks!

Mike Dirnt said...

Hi Data,
sure it includes the latest changes made to STI constituents. thats one of the primary purpose of my blog that is to keep track of those STI constituents :)

Yangae said...

Hi, Mike,
I have been following your masterpiece for quite a while. As I understand from Wilmar's latest annual report, the public free float is 13.6% as of 4 March 2009. According to FTSE index rules, this belongs to the Not Eligible category. I am curious to know what Free Float Factor u used to derive your calculations.
Thanks very much.
Yangae

Mike Dirnt said...

Hi Yangae,

My FF are extracted from DBS Vickers research reports or annual reports. Based on the latest Vickers report for Wilmar, FF is 24.1% (14 May). I used this number

But based on the annual report (4 Mar), it is at 13.6%.

As you know, my calculation is just a close estimation of the actual PE with some errors of course. The last time i checked, my result is +-0.5.

Anyway if its really true that the FF < 15%, then FTSE will remove Wilmar in the next update which should be in September.

Thanks for following my blog :)

Yangae said...

Hi, Mike,

I did some further checks on Wilmar and found that their FF in annual report 2007 is 13.8% as of 17 Mar 08, not much change from that as of 4 Mar 09. Maybe Vickers or FTSE has other more accurate ways of measuring FF.
Anyway, its very comforting to know that your values are within striking distance of the bull's eye, which is a good enough estimation for me.
Thanks very much.

Yangae

Mike Dirnt said...

Hi Yangae,

as you know people like us dont have bloomberg terminal so we cant really check the exact figures. however i have a friend who is a regular chatter in my chat box who has bloomberg terminal at work. so i do asked him once in a while :)


i hope the DBS Vickers (Reuters) data are correct

NT said...

Hey Mike,

This is absolutely great stuff you're doing!

Is there a link on your page somewhere where you tabulate the P/E and P/B of the STI? I can't seem to find the values you've so painstakingly calculated in the past.

Reason is cos I'm trying to calculate the Equity Risk Premium (ERP) over 2008-2009 and the historical P/E and P/B figures wld be great. I'd be happy to share it with you after I complete it.

Thanks and keep up the good work!

Mike Dirnt said...

Hi NT,

Thanks. Are you referring to the old PE and PTB of STI?

I just have those old ratios in an excel file. I did not tabulate those older STI ratios as i did not calculate them at regular intervals. I calculate the numbers as and when i am free

NT said...

Hi Mike,

yes, I'm referring to the old ratios. Is it possible to put up the Excel file? I'd be happy to dig up the old SIBOR rates to calculate the ERP, so everyone can also learn together.

cheers

Mike Dirnt said...

Hi NT,

i guess you did not read my post in the chat box. you can contribute there if you wish to :)

send me an email so that i can send you the excel file. my email is under my profile

Simon said...

Mike,
Can you share what is the current PE of STI in Nov 2009 and also the average for the year e.g from Jan to Oct or Nov 2009 whichever is available ? Thanks for yr help in advance

Mike Dirnt said...

Simon sorry i have stopped tracking those ratios due to time constraint.