The Motley Fool Singapore
Singapore Banks vs. US Banks: Which Are Cheaper Now?
Local investors will likely be familiar with the three major banks listed in Singapore: DBS Group Holdings Ltd (SGX: D05), United Overseas Bank Ltd (SGX: U11), or UOB, and Oversea-Chinese Banking Corp. Limited (SGX: O39), or OCBC. How cheap are our local bank stocks compared to their peers in the US? Are you overpaying? The price-to-book ratio tells us how much we are paying for every dollar of equity on a company’s books. The ratio is especially useful for stocks that have largely tangible assets, which is the case for most banks. The table below shows the price-to-book ratio of the big three banks in Singapore against a selection of three of the largest US-listed banks. Source: Author’s compilation of data from Morningstar The price-to-book ratios between the six banks are fairly