Healthcare is always needed, so is a good buy?? is it?
61.8% of its revenue comes from Parkway life hospital.
Identification of Companies that are undervalued.
- Price to Earning Ratio : 24.19
- Price to Book Ratio : 1.55 ( 55% more expensive)
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)
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”