The Motley Fool

IREIT Global Is Trading Close to Its 52-Week Low. Is It Time to Buy?

IREIT Global (SGX: UD1U) has five freehold properties in Germany, located in Berlin, Bonn, Darmstadt, Münster, and Munich.

At their current price of S$0.74 (at the time of writing), IREIT Global’s units are just S$0.03 higher than their 52-week low of S$0.71. Is IREIT Global cheap now? If shares are cheap, it might be a good opportunity for investors.

There is no easy answer, but we can get some insight by comparing IREIT Global’s current valuation with the market’s valuation. We’ll use three common valuation metrics: the price-to-book (P/B) ratio, price-to-earnings (P/E) ratio, and dividend yield.

I will be using the average P/B ratio and distribution yield for the 41 REITs listed in Singapore’s stock market. With that, let’s look at the comparison below:

Source: SGX Stock Facts

IREIT Global’s distribution yield is higher than that of the market average, indicating that it’s trading at a lower valuation. On the other hand, its P/B ratio is comparable to the market average.

IREIT Global’s current valuation looks cheap as compared to the market average. However, investors should take a deeper look into the business fundamentals of IREIT Global before buying its units.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook to keep up-to-date with our latest news and articles.

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.