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$Semiconductors (LIST3034.SG)$ $AEM SGD (AWX.SG)$$Frencken (...

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  • 丰衣足食 : Sign in or sign up to view

  • 丰衣足食 : 1.03buy more

  • 丰衣足食 : Frencken 1.05 bought on low

  • 丰衣足食 : Why Frencken Group Limited (Singapore Stock Exchange: E28) is worth watching
    Sunday, April 30, 2023, 9:45 a.m. GMT+8
    Frencken Group Limited (SEX: E28) is not the biggest company, but the sharp price fluctuations on the New Stock Exchange over the past few months have attracted widespread attention. At one point, it rose to S$1.21, then fell to a low of SGD 0.95. Some changes in stock prices can provide investors with better opportunities to enter stocks and the possibility to buy them at lower prices. One question that needs to be answered is whether Frencken Group's current trading price of SGD 1.04 reflects the real value of small-cap stocks? Or is it currently underrated and offers us a chance to buy it? Let's take a look at the Frencken Group's prospects and values based on the latest financial data to see if there are any catalysts for price changes.

    Check out our latest analysis of the Frencken Group

    How much is Frencken Group worth?

    According to my price multiplier model, the current stock price seems reasonable, and I compared the company's price-earnings ratio to the industry average. In this case, I used the price-earnings ratio (PE) since there wasn't enough information to reliably predict the stock's cash flow. I've found Frencken Group's 8.56x ratio is slightly lower than the 10.26x ratio of its industry peers, meaning if you buy Frencken Group today, you'll pay a fair price for it. Also, if you think Frencken Group's trading price should be within this range, then in the long run, there isn't much room for the stock price to surpass that of peers in other industries. Is there still a chance to buy lower in the future? Since Frencken Group's stock price fluctuates a lot, we may see it fall (or rise) in the future, giving us another chance to buy. This is based on its high beta value, which is a good indicator of how much the stock has changed compared to the rest of the market.

    Can we expect growth from Frencken Group?

    Revenue and revenue growth
    Revenue and revenue growth
    Investors looking to grow their portfolios may want to consider the company's prospects before buying shares in the company. Although value investors will argue that the most important thing is intrinsic value relative to price, a more compelling investment theme is to achieve high growth potential at a low price. However, since profit growth is expected to be relatively slow in the next few years, at 7.3%, the increase does not appear to be a key driver of Frencken Group's purchasing decisions, at least in the short term.

    What does this mean to you

    Are you a shareholder? The market seems to have absorbed the growth prospects of E28, with stock prices trading around industry price multiples. However, there are other important factors that we haven't considered today, such as the financial strength of the company. Have these factors changed since you last looked at the E28? If prices fall below the price-earnings ratio of the industry, are you confident enough to invest in the company?

    Are you a potential investor? If you've been watching the E28, now is probably not the best time to buy it because it's trading at a multiple of the industry price. However, a positive growth outlook could mean that other factors are worth studying in depth to take advantage of the next price drop.

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