The Motley Fool Singapore
Sembcorp Marine Ltd’s Share Price is Down 30% From a 52-Week High: Is It Cheap Now?
SembCorp Marine Ltd‘s (SGX: S51) share price of S$1.65 at the time of writing is down 30% from a 52-week high of S$2.35. Is Sembcorp Marine cheap now? If so, it might be a good opportunity for investors. Determining cheapness It’s difficult to determine if Sembcorp Marine is cheap, but we can get some insight by comparing the company’s current valuation with the market’s using three common metrics: the price-to-book (P/B) ratio, price-to-earnings (P/E) ratio, and dividend yield. I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the market; it’s an exchange-traded fund that tracks the fundamentals of Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI). The company’s business Sembcorp Marine provides offshore and marine engineering