Asian Pay Television Trust (SGX:S7OU), a media company based in Singapore, saw its share price hover around a small range of SGD0.57 to SGD0.61 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Asian Pay Television Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Asian Pay Television Trust
What is Asian Pay Television Trust worth?
The stock seems fairly valued at the moment according to my relative valuation model. In this instance, I’ve used the price-to-equity (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Asian Pay Television Trust’s ratio of 20.56x is trading slightly below its industry peers’ ratio of 22.31x, which means if you buy Asian Pay Television Trust today, you’d be paying a fair price for it. And if you believe that Asian Pay Television Trust should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. Furthermore, it seems like Asian Pay Television Trust’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Asian Pay Television Trust look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Asian Pay Television Trust’s earnings over the next few years are expected to increase by 21.24%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Asian Pay Television Trust’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at Asian Pay Television Trust? Will you have enough conviction to buy should the price fluctuates below the true value?