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    Market Value Ratio of SP SETIA

    Uploaded by

    LeeyaRazak
    This document analyzes market value ratios for SP Setia Berhad from 2014-2017. It calculates the company's book value per share, earnings per share, market price per share, price-earnings ratio, and dividend yield for each year. The analysis finds that SP Setia's book value consistently exceeded its market price, suggesting its shares were undervalued. The 2017 price-earnings ratio of 8.13 indicated investor expectations for future growth. Dividend yields were also high, with 30.67% of profits returned to shareholders in 2016.

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    Market Value Ratio of SP SETIA

    Uploaded by

    LeeyaRazak
    51 views7 pages
    This document analyzes market value ratios for SP Setia Berhad from 2014-2017. It calculates the company's book value per share, earnings per share, market price per share, price-earnings ratio, and dividend yield for each year. The analysis finds that SP Setia's book value consistently exceeded its market price, suggesting its shares were undervalued. The 2017 price-earnings ratio of 8.13 indicated investor expectations for future growth. Dividend yields were also high, with 30.67% of profits returned to shareholders in 2016.

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    Market Value Ratio

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    This document analyzes market value ratios for SP Setia Berhad from 2014-2017. It calculates the company's book value per share, earnings per share, market price per share, price-earnings ratio, and dividend yield for each year. The analysis finds that SP Setia's book value consistently exceeded its market price, suggesting its shares were undervalued. The 2017 price-earnings ratio of 8.13 indicated investor expectations for future growth. Dividend yields were also high, with 30.67% of profits returned to shareholders in 2016.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views7 pages

    Market Value Ratio of SP SETIA

    Uploaded by

    LeeyaRazak
    This document analyzes market value ratios for SP Setia Berhad from 2014-2017. It calculates the company's book value per share, earnings per share, market price per share, price-earnings ratio, and dividend yield for each year. The analysis finds that SP Setia's book value consistently exceeded its market price, suggesting its shares were undervalued. The 2017 price-earnings ratio of 8.13 indicated investor expectations for future growth. Dividend yields were also high, with 30.67% of profits returned to shareholders in 2016.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    MARKET VALUE RATIO @ SP SETIA BERHAD (Company Evaluation)

    i) Book Value Per Share (A)

    Formula :- Total Common Stockholder’s Equity


    Common Share Outstanding

    2014 = 5, 185, 331, 000 (pg 106)


    2,538,332,000 (pg 169)
    = RM 2. 04

    2015 = 5,667,456, 000 (pg 110)


    2, 628, 356, 000 (pg 178)
    = RM 2. 16

    2016 = 7, 446, 559, 000 (pg 101)


    2, 853, 520, 00 ( pg 163)
    = RM 2. 61

    2017 = 8, 128, 053, 000 (pg 136 )


    3, 427, 783, 000 (pg 215)
    = RM 2. 37
    ii) Earnings Per Share (B)

    Formula :- Net Income After Tax


    Common Share Outstanding

    2014 = 328, 734, 000 (pg 107)


    2,538,332,000
    = RM 0. 13

    2015 = 491, 957, 000 (pg 111)


    2, 628, 356, 000
    = RM 0. 19

    2016 = 680, 592, 000 (pg 102)


    2, 853, 520, 00
    = RM 0. 24

    2017 = 826, 220, 000 (pg 138)


    3, 427, 783, 000
    = RM 0. 24
    iii) Market Price Per Share (C)

    Formula :- Total Common Share Price


    Common Share Outstanding

    2014 = 1, 903, 748, 000


    2,538,332,000
    = RM 0. 75

    2015 = 1, 971, 226, 000


    2, 628, 356, 000
    = RM 0. 75

    2016 = 2, 140, 140, 000


    2, 853, 520, 00
    = RM 0. 75

    2017 = 6, 693, 971, 000


    3, 427, 783, 000
    = RM 1.95 (according to the annual report the new Companies Act 2016
    had abolished the Par value for stock at pg 219)
    iv) Price Per Earning Ratio (D)

    Formula :- Market Price Per Share (C)


    Earnings Per Share (B)

    2014 = 0. 75
    0.13
    = 5. 77 PE Ratio

    2015 = 0. 75
    0. 19
    = 3. 95 PE Ratio

    2016 = 0. 75
    0. 24
    = 3. 13 PE Ratio

    2017 = 1. 95
    0 .24
    = 8. 13 PE Ratio
    v) Dividend Yield (E)

    Formula :- Annual Dividend Payout


    Price Per Share X 100 %

    2014 = 0.04 + 0.07 * 100 %


    0. 75
    = 14 . 67%

    2015 = 0.057 + 0.04 * 100 %


    0. 75
    = 12. 93%

    2016 = 0.19 + 0.04 * 100 %


    0. 75
    = 30. 67%

    2017 = 0.16 + 0.0379 + 0.04 * 100 %


    0. 75
    = 12. 20%
    Dividend Payout SP Setia.
    Interpreting The Market Value.

    According to the calculation above, we can compare the result of the


    Book Value per Share with the Current Market Price per Share. We can see
    throughout the year from 2014 to 2017 the SP Setia Book Value per Share is
    above the Market Price Per Share of SP Setia with the year 2016 as the most
    highest in term of their value per share.
    It can be considered as the that SP Setia share price is undervalued by
    the market. It may also can be interpreted that the market recognized SP Setia
    as a matured company with a limited Growth Potential.
    In General a high Price Per Earnings Ratio suggest that investors are
    expecting higher earning growth in the future. As we can see at the calculation
    above, year 2017 the PE ratio is 8.13, this show that the market is expecting SP
    Setia to have significant growth in the company for few years following.
    Looking at the Dividend yield, we can see that the dividend pay-out by
    SP Setia is high. Dividend yield percentage is important to analyse to determine
    how much of the company profits are given back to the share to the
    shareholders. As we can see, on the year 2016, SP setia given out 30.67% of
    the company profit to the shareholder under the company Dividend Re-
    Investment Plan.

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