The Weekly Nibble: Valuing Companies

Here are some of the most interesting articles that have appeared on the Motley Fool Singapore’s website this week.

The 2017 Round-Up Continues

As a continuation of last week’s 2017 round-up, here are three more real estate investment trusts (REITs) that lost to the Straits Times Index (SGX: ^STI) in terms of overall performance.

Including last week’s articles, the five REITs that were featured are: Starhill Global Real Estate Investment Trust (SGX: P40U), OUE Commercial Real Estate Investment Trust (SGX: TS0U), ESR-REIT (SGX: J91U), Soilbuild Business Space REIT (SGX: SV3U) and AIMS AMP Capital Industrial REIT (SGX: O5RU).

6 Useful Valuation Ratios For Stock Market Investors

In the final part of his three-part series, fellow Fool, Jeremy Chia, showed us six valuation ratios that we can use to evaluate companies before buying their shares. The six valuation methods discussed were:

a) price-to-earnings ratio;

b) price-to-sales ratio;

c) price-to-book ratio;

d) price-to-tangible-book ratio;

e) price-to-free-cash-flow ratio; and

f) price-earnings-to-growth ratio.

Do note that valuation methods should not be used in isolation. We should always look at the business fundamentals first before attempting to value any company.

2 Signs That Point To a Cryptocurrency Bubble

According to Coindesk, bitcoins are going for around US$11,461 per “coin” at the time of writing. At one point last year, it was selling at some US$19,300. With the astronomical rise (and fall) in price, it can make us wonder if the price increase is sustainable.

Based on his personal experience, Jeremy Chia explains why he thinks that the price of cryptocurrencies is  unsustainable right now and what we can do instead of getting sucked into the euphoria.

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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 Sudhan P owns units in AIMS AMP Capital Industrial REIT