Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Its revenues, PBT and EPS grew consistently consistently but at a slow rate.
PBTMs were maintained and its PBT in the last 2 years grew faster due to increase in its PBT margins.
ROEs averaged 14.3% over the last 10 years. The trend showed a downward slope and its latest ROE in the above chart was 12.2%.
Its DPO ratio was 47.9%.
It retained RM 1.53 per share of its earnings (for maintainance or for growth) and increased its EPS by 10.59 sen over the 10 years, giving a return on retained earnings RORE of 6.9%.
Its share price in 2013 was RM 3.44 per share and in 2022 was RM 4.15, a positive change of RM 0.71 per share.
Quoting Warren Buffett, for every $1 retained by the company, this should be reflected in its share price. In the case for PBBank, it retained RM 1.53 over the 10 years and its share price had risen RM 0.71 per share.
For those who bought this share in 2013 at RM 3.44 per share, they would have gained RM 0.71 per share in capital appreciation and received total dividends of RM 1.28: a 58% gain over 10 years ( approximately CAGR of 7%).
Retaining about 52.1% of its earnings and having a ROE of 12.2% are encouraging for the owners of this stock.
At P/BV of 1.6, it is priced at a premium to most banking stocks. With its declining ROE, we can expect its P/BV to remain at present level or to decline slightly.
From 2013 to 2022, those who invested in PBB saw their investment rose (cap appreciation + dividends) by 58% over the 10 year period, and this was a CAGR of 4.68%.
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2014 - 2023
Its revenues, PBT and EPS grew consistently consistently but at a slow rate.
PBTMs were maintained and its PBT in the last 2 years grew faster due to increase in its PBT margins.
ROEs averaged 14.3% over the last 10 years. The trend showed a downward slope and its latest ROE in the above chart was 12.2%.
Its DPO ratio was 47.9%.
It retained RM 1.53 per share of its earnings (for maintainance or for growth) and increased its EPS by 10.59 sen over the 10 years, giving a return on retained earnings RORE of 6.9%.
Its share price in 2013 was RM 3.44 per share and in 2022 was RM 4.15, a positive change of RM 0.71 per share.
Quoting Warren Buffett, for every $1 retained by the company, this should be reflected in its share price. In the case for PBBank, it retained RM 1.53 over the 10 years and its share price had risen RM 0.71 per share.
For those who bought this share in 2013 at RM 3.44 per share, they would have gained RM 0.71 per share in capital appreciation and received total dividends of RM 1.28: a 58% gain over 10 years ( approximately CAGR of 7%).
Retaining about 52.1% of its earnings and having a ROE of 12.2% are encouraging for the owners of this stock.
At P/BV of 1.6, it is priced at a premium to most banking stocks. With its declining ROE, we can expect its P/BV to remain at present level or to decline slightly.
From 2013 to 2022, those who invested in PBB saw their investment rose (cap appreciation + dividends) by 58% over the 10 year period, and this was a CAGR of 4.68%.
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