Summary of P/E for the Real Estate and Construction Sector (PROPCON) As of mid-2018, TerraBKK Research understands that investors in the Thai stock market should carefully choose the timing for investing in individual stocks. After analyzing fundamental factors and assessing stock prices based on personal judgment, the P/E ratio is another metric for evaluating the relative value of stocks at that moment. Many have observed that during periods when stocks are performing well, the P/E ratios tend to be high because investors assign higher valuations, believing that the businesses have future growth potential that could eventually lower the P/E ratio as earnings increase in the future.

            Benefits of the P/E Ratio Besides being used to compare the value of a stock over different periods in the past and present, it can also be compared with businesses that are similar or belong to the same category. TerraBKK Research summarizes the P/E ratios for the Real Estate and Construction Sector (PROPCON), which includes businesses in construction materials, construction contracting, and property development as follows:

            Construction Contracting consists of 19 companies with an average industry P/E of 24.5 times. The company with a significantly higher P/E ratio than the group is CNT - Christiani & Nielsen (Thai) Public Company Limited.


            Construction Materials consists of 21 companies with an average industry P/E of 35.7 times. The company with a significantly higher P/E ratio than the group is CCP - Chonburi Concrete Products Public Company Limited.

            Property Development consists of 55 companies with an average industry P/E of 41.9 times. The companies with significantly higher P/E ratios than the group are BROCK - Rock Garden Home Company Limited and RML - Raimon Land Public Company Limited.

              For companies that could not provide a P/E ratio, it is because they have reported negative earnings for the last 12 periods or are currently incurring losses. ---TerraBKK

Article by: TerraBKK Investment Tips
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