Parkway Life – What really matters in a Reit

Healthcare is always needed, so is a good buy?? is it?

 61.8% of its revenue comes from Parkway life hospital.

  1. Identification of Companies that are undervalued.

    • Price to Earning Ratio : 24.19
    • Price to Book Ratio : 1.55 ( 55% more expensive)
  2. Learn about Their numbers

    • Gearing : 35.3% (Low dependancy on debt for growth)
    • Wale : 9.12 years (Longer lease agreement – Sign of stability)
    • Current Ratio : 1.32 (32% above its normal ability to pay off its liability)
    • Constant and increasing dividend payout
    • Strong Management Ability (Ability to increase number of leasees during financial crisis and after)

Screen Shot 2016-09-12 at 2.10.49 pm.jpg

In a “REIT” shell,  as beautiful and amazing its profile can be, like how good a Merc is, is it logical for you to pay it at a price 50% than its actual value? Remember regression to the mean!!

“Timing in the market will determine how quick you can reach from point A to B, if only you understand value”

+1 Knowledge point

+1 P.I


2 thoughts on “Parkway Life – What really matters in a Reit

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s