Sunday, March 6, 2011

Stand.Chart.Bank SCBPL - Valuation

Company SCBPL
Company Name Stand.Chart.Bank
Avg EPS 0.51
Avg EPS FV 3.61
EPS 0.95
EPS FV 6.79
Current Price 7.9
Quarter Year End
Div 0.6
Div FV 4.29
Avg Div 0.15
Avg Div FV 1.07
Avg 5.69
Upside -27.97
Div Yield 7.59%
Book Value 12.7
P/E 8.32
P/BV 0.62
Sector Banks

Average yearly EPS (2007-2010) = Rs. 0.51
Fair Value based on above = Rs. 3.61
It is lower than the last closing share price, so no good for investment.
Last four quarters EPS = Rs. 0.95
Fair value based on above EPS = Rs. 6.79
Last closing price = Rs. 7.9
So still not good enough.
P/E = 8.32
Not good enough
Dividends distributed (per sahre) during last four quarters = Rs. 0.6
Fair value based on above = Rs. 4.29
Dividend Yield = 7.59%
Not bad
Still not good for value investors.
Average dividend paid = Rs. 0.15 (Since 60 paisa is the only dividend the bank has ever paid, the average dividend gets diluted when it is averaged over four years)
Fair value based on above = Rs. 1.07
Obviously should not have been worthy of an investment.
Book value = Rs. 12.7
First positive indicator.
P/BV = 0.62
Thumbs up
Average of fair values and BV = Rs 5.69
Still fails as an investment case.
Upside potential based on above = -27.97%
And that concludes the banks valuation case.
To summarize the above, the bank is no good (currently) for value investors.


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