Little Value Investor

LVI: Plantation Sector Price to EPS Peer Comparison

Mark Goh
Publish date: Wed, 02 Mar 2022, 04:26 PM
Mark Goh
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Little Value Investor is my public (but also personal) archive of my investing ideas so that I can look back at my previous self to reflect.

I have been investing starting in 2016 when my bestfriend convinced me to invest. Mostly self thought, my early journey have been binge watching Professor's Damodaran NYU Stern University's semester classes on Valuation. Now, in my free time I read announcements, quarterly and annual reports.

Following my two posts (Energy and Semiconductor) Sector Price to EPS Peer Comparison) on sector Price to eps comparisons, 'plantation' stocks are lit right now too. So I took a stab -here it goes.

After using the same methodology, the plantation stocks that are left are:

INNO, KLK, TAANN, BKAWAN, SOP, UTDPLT, IOICORP, KMLOONG, FAREAST, HSPLANT, CHINTEK, TSH, GENP, MATANG

This time the plot looks extremely 'on the line' with an R squared of 0.97! There is no further proof needed that PE ratio works.


Caption: Right click and 'open in another tab' to see the full resolution graph.

If you want to know why some plantation stocks are more richly valued versus others? Answer: It is their earnings track record. The higher the eps_5y then the higher the price.

Hope my analysis helps you in hunting for value stocks. If you draw any conclusions on the plot above do write your comments below.

Thank you

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