How Does CapitaLand Limited’s Valuation Today Compare To History?

CapitaLand Limited (SGX: C31) is a real estate conglomerate and is one of the largest companies in Singapore’s stock market with its market capitalisation of nearly S$13 billion.

Over the last 12 months, CapitaLand has seen its share price fall by over 10%. Given the decline, I thought it’d be interesting to compare CapitaLand’s current valuation with history.

The valuation metric I want to focus on here is the price-to-book (PB) ratio given that CapitaLand is a real estate company. So, here’s a chart that shows how CapitaLand’s PB ratio has changed over the past five years:

Source: S&P Global Market Intelligence

We can see that the company’s PB ratio has climbed to as high as over 1.1 and fallen to a low of less than 0.7. At the current PB ratio of 0.75, it is clear that CapitaLand’s valuation is near a five-year low.

But this does not necessarily mean that CapitaLand will be a good investment. Companies that see their businesses crumble can still be lousy investments even if bought at low valuations. At the end of the day, valuation ratios are only one of many aspects about a company that investors should consider before making an investment decision.

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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.