The Motley Fool Singapore
Venture Corporation Ltd Is Trading Close To Its 52-Week Low Price: Is It Cheap Now?
Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider. At its current price of S$16.54 (at the time of writing), Venture’s shares are just 4% higher than its 52-week intraday low price of S$15.83. This raises a question: Is Venture 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. Having said that, we can still get some insights by comparing Venture’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 market; the SPDR STI ETF is an exchange-traded