Dear readers, a week ago, I shared a post on which Straits Times Index (STI) banking stock is the most attractive to investors. There are few banking stocks in Singapore and the STI banking stocks are once again DBS stock, OCBC stock and UOB stock.
In that post “DBS, OCBC or UOB stock most attractive now” , I showed investors how OCBC stock can be seem to be the most attractive from the dividend yield based on fully-valued perspective, followed by UOB stock and DBS stock. There are always different perspective to carry out the intellectual exercise. Seen from different perspective, OCBC stock may not be the most attractive and the other banking stocks in DBS stock or UOB stock could be.
There is another perspective which we can use to assess the attractiveness of the three banking stocks. A perspective which will yield the following names in decreasing order of attractiveness:
UOB stock
DBS stock
OCBC stock
From this perspective, UOB stock is the most attractive, followed by DBS stock and then yes, the most attractive banking stock previously talked about became the least attractive.
What perspective have I used to yield this latest ranking? Well, it is none other than using the Price-to-Earnings ratio of the stocks as follows:
UOB stock (9.15)
DBS stock (10)
OCBC stock (10.09)
From the Price-to-Earnings ratio perspective, UOB stock is the most attractive, followed by DBS and OCBC stocks.
Now, as a whole, taking in view the dividend yield based on fully-valued perspective, and the Price-to-Earnings ratio perspective; from the price-to-book, price-to-earning, dividend yield points; we arrived at one name of the most attractive STI banking stock in Singapore. And this stock is none other than:
UOB stock is currently trading at $19.60 per share at a Price-to-Book ratio of 0.816, a dividend yield of 4.80% and a Price-to-Earnings ratio of 9.15. It is currently trading at 14.5% above its 52-week low of $17.125.
Please note that this is not an investment recommendation. The markets as what I see it now are volatile and bearish as a whole.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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