![[san%20miguel%20corp%20logo.jpg]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi82-JgzuIYID3FAavApX6mv5uZ3ohTO8ZWZLGTLAaGX3RXIx_3xAgonAhTHnjYJNtS_s2WXwdw4FFhUJNue9tOInVHOp7j-KWfPaivkozB2aTSxO0afVieOL-7U2fv9vtrn591QXrFF01A/s1600/san%2520miguel%2520corp%2520logo.jpg)
I’ve been observing San Miguel Corp., lately and I must say that this company is a good buy especially now that its momentum has picked up. The Management moves of selling existing stable business and buying into fast growing stocks makes its ROE seems low and scare away many investors (or should I say traders). But looking in depth at its financial statement, the company has a healthy balance sheet and will surely grow fast in the next 10 years. It has a low to medium leverage withdebt to equity ratio, or DE ratio (a valuation to test the debt level of a company) is 72.74%. Assuming a 20% annual growth for the next 10 years, SMC stock price intrinsic value is at PhP196 by discounted cash flow calculation. I’m expecting a 50% upside for this stocks.
I’ve been observing San Miguel Corp., lately and I must say that this company is a good buy especially now that its momentum has picked up. The Management moves of selling existing stable business and buying into fast growing stocks makes its ROE seems low and scare away many investors (or should I say traders). But looking in depth at its financial statement, the company has a healthy balance sheet and will surely grow fast in the next 10 years. It has a low to medium leverage withdebt to equity ratio, or DE ratio (a valuation to test the debt level of a company) is 72.74%. Assuming a 20% annual growth for the next 10 years, SMC stock price intrinsic value is at PhP196 by discounted cash flow calculation. I’m expecting a 50% upside for this stocks.
No comments:
Post a Comment