Jardine Matheson Stock Intrinsic Value – Jardine Matheson Holdings Limited’s Intrinsic Value: Potential 23% Discount on Share Price
May 3, 2023
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Jardine Matheson ($SGX:J36) Holdings Limited is a multinational conglomerate incorporated in Bermuda and headquartered in Hong Kong. Using a 2 Stage Free Cash Flow to Equity Model, Jardine Matheson’s intrinsic value could be estimated to be as low as US$36.99 per share, 23% lower than its current share price of US$48. This suggests that investors would be wise to invest in Jardine Matheson with caution, as there may be a potential for a discount of up to 23%. However, the company’s performance over the past few years does indicate that the intrinsic value may be higher than this estimate.
Share Price
Jardine Matheson Holdings Limited (JARDINE MATHESON) opened at SG$48.8 on Tuesday and closed at SG$49.0, representing a 1.6% increase from the previous closing price of 48.2. While JARDINE MATHESON’s share price has increased over time, its intrinsic value is estimated to be at a significant discount of 23% when compared to its current stock price. This suggests that investors may be able to purchase JARDINE MATHESON stock at a good value, especially if the intrinsic value can be further increased in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jardine Matheson. More…
| Total Revenues | Net Income | Net Margin |
| 37.72k | 354 | 0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jardine Matheson. More…
| Operations | Investing | Financing |
| 4.83k | -2.59k | -3.27k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jardine Matheson. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 89.15k | 32.95k | 100.98 |
Key Ratios Snapshot
Some of the financial key ratios for Jardine Matheson are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.7% | -12.4% | 10.2% |
| FCF Margin | ROE | ROA |
| 9.5% | 8.3% | 2.7% |
Analysis – Jardine Matheson Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of JARDINE MATHESON‘s wellbeing. Our proprietary Valuation Line revealed that the intrinsic value of JARDINE MATHESON shares is around SG$59.9. Currently, JARDINE MATHESON stock is traded at SG$49.0 – a fair price but one that is undervalued by 18.2%. This presents a potential opportunity to buy the stock at a lower price and make the most of it when the stock rises in value. This could be a smart move for an investor looking to make a high return. More…
Peers
In 1841, two Scottish merchants founded Jardine, Matheson & Co. in Canton, China. The company flourished in the Far East during the 19th century, and by the early 20th century, it had become one of the most powerful mercantile houses in Asia. The company’s principal competitors are Guoco Group Ltd, CJ Corp, and CK Hutchison Holdings Ltd.
– Guoco Group Ltd ($SEHK:00053)
Guoco Group Ltd is a Hong Kong-based investment holding company principally engaged in property businesses. The Company operates its businesses through four segments. The Property Development and Investment segment is engaged in the development of properties for sale, as well as the investment in properties. The Property Management segment is engaged in the provision of property management services. The Hotel Operations segment is engaged in the operation of hotels. The Others segment includes investment holding, as well as the provision of corporate and other services. The Company mainly operates businesses in Hong Kong, Mainland China, Malaysia, Singapore and the United Kingdom.
– CJ Corp ($KOSE:001040)
CJ Corp is a South Korean conglomerate with a market cap of 2.27T as of 2022. The company has a Return on Equity of 103.33%. CJ Corp is involved in a variety of businesses including food and food service, pharmaceuticals, biotechnology, entertainment, and logistics. The company has a strong presence in South Korea and has been expanding its operations internationally in recent years.
– CK Hutchison Holdings Ltd ($SEHK:00001)
CK Hutchison Holdings Ltd is a conglomerate holding company headquartered in Hong Kong. It was founded in 2015 by the merger of Cheung Kong Holdings and Hutchison Whampoa. It is the largest conglomerate in Hong Kong, with businesses in a variety of industries including telecommunications, ports and related services, retail, infrastructure, energy, and chemicals.
CK Hutchison has a market cap of 166.99B as of 2022. Its return on equity is 6.66%. The company is involved in a variety of businesses including telecommunications, ports and related services, retail, infrastructure, energy, and chemicals.
Summary
Jardine Matheson Holdings Limited’s (JARD) intrinsic value appears to be around 23% below its current share price when analyzed using a two-stage free cash flow model. This suggests that the stock may be undervalued by the market at this time, presenting a potential opportunity for investors. The free cash flow model takes into account JARD’s earnings, net present value of future cash flows, and shareholder returns.
Based on these factors, the estimated value comes to US$36.99 per share. Nonetheless, investors should conduct further research on JARD’s financials and corresponding industry dynamics before committing any capital.
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