The Motley Fool Singapore
Fraser and Neave Limited Is Trading Close To Its 52-Week Low Price: Is It Cheap?
Fraser and Neave Limited (SGX: F99), or F&N for short, is a consumer group with expertise in the food and beverage, publishing and printing sectors. At the current price of S$1.86 (at the time of writing), F&N’s shares are just two cents higher than the 52-week low price of S$1.84. This raises a question: Is F&N cheap now? This question is important because if the firm’s shares are cheap, it might be a good opportunity for investors. Unfortunately, there is no easy answer. However, we can still get some insight by comparing F&N’s current valuations with the market’s valuation. The three valuation metrics I will focus on are the price-to-book (PB) ratio, price-to-earnings (PE) ratio, and dividend yield. I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the m