MENU

Thai Beverage Public Company Limited’s Valuation: Today vs. History

Thai Beverage Public Company Limited (SGX: Y92) is a company that operates mainly in Thailand and its main product suite would be alcoholic beverages, such as spirits and beer. The company has been one of the best performing stocks in Singapore’s market over the past five years, with its share price rising by 266%.

Given such a performance, I thought it’d be interesting to have a look at Thai Beverage’s valuations in relation to history. I’m going to focus on two ratios here, namely, the price-to-earnings (PE) ratio and price-to-book (PB) ratio.

At Thai Beverage’s current share price of S$0.97, it has a trailing PE ratio of 22.4. As you can see from the following chart, Thai Beverage’s trailing PE ratio at the moment is actually near a five-year high.

thai-beverages-pe-ratio-over-past-5-years
Source: S&P Global Market Intelligence

It’s a similar story with Thai Beverage’s PB ratio of 5.4 at its current price. The chart just below shows that the alcoholic beverages company’s PB ratio is near a five-year high too right now:

thai-beverages-pb-ratio-over-past-5-years
Source: S&P Global Market Intelligence

So to sum up the two charts, Thai Beverage has seen its PE and PB ratios climb over the past five years.

But when it comes to valuation ratios, it is important to note that high PE and PB ratios in and of themselves do not make a company a lousy investment. Companies that are able to grow their businesses strongly can still be great investments even if bought at high valuations.

Valuation ratios are only one of the many aspects about a company that investors should consider before making an investment decision.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.