In This Article:
The real estate sector performs relatively in-line with the wider economy. Prosperous periods bring about high growth and inflation, leading to strong returns in real estate investments. EC World Real Estate Investment Trust and Ascendas India Trust are real estate stocks on my list that are potentially undervalued, which means their current share prices are trading well-below what the companies are actually worth. Investors can profit from the difference by investing in these cyclical stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
EC World Real Estate Investment Trust (SGX:BWCU)
Listed on 28 July 2016, EC World REIT is the first Chinese specialised logistics and e-commerce logistics REIT listed on Singapore Exchange Securities Trading Limited (“SGX-ST”). EC World Real Estate Investment Trust was started in 2015 and with the company’s market cap sitting at SGD SGD578.37M, it falls under the small-cap category.
BWCU’s shares are now hovering at around -59% lower than its actual worth of $1.78, at the market price of S$0.73, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Furthermore, BWCU’s PE ratio is trading at 12.06x while its REITs peer level trades at, 15.03x meaning that relative to its competitors, you can buy BWCU’s shares at a cheaper price. BWCU is also in good financial health, as current assets can cover liabilities in the near term and over the long run.
Continue research on EC World Real Estate Investment Trust here.
Ascendas India Trust (SGX:CY6U)
Ascendas India Trust (“a-iTrust” or the “Trust”) was listed in August 2007 as the first Indian property trust in Asia. Ascendas India Trust was started in 2004 and has a market cap of SGD SGD1.08B, putting it in the small-cap group.
CY6U’s shares are now hovering at around -77% below its value of $4.44, at a price of S$1.04, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that CY6U’s PE ratio is trading at 7.1x while its Real Estate peer level trades at, 10.27x indicating that relative to its peers, we can buy CY6U’s stock at a cheaper price today. CY6U is also in good financial health, with current assets covering liabilities in the near term and over the long run.