Base on latest FY2009 Financial Report

• PE = 29.4
• Dividend Yield = 3.07%
• NAV = $0.7326
• Net Earning = 51.4%
• Current Ratio = 1.928
• ROA = 21.6%
• ROE = 39.3%

Stock Background

• 3 Years High = $16.3
• Current Price = $8.47

Intrinsic Value Calculaton

PE Model

• Fair value PE, base on FY2010 Forward EPS $0.37843 (Average EPS of 2007, 2008 and 2009)
• Intrinsic Value = $5.68
• PEG = 1.49

Discounted EPS Model

• EPS Growth Rate = capped at 15%
• Discount Rate = 5%
• 2010F EPS = $0.3783 (Average EPS of past three years)
• Intrinsic Value = $6.46

DCF Model

• 2010F Net Operating Cash Flow = $380.429 Million (Average Net Operating Cash Flow for past three years)
• Growth Rate = capped at 15%
• Discount Rate= 5%
• Number of Shares = 1,062.062 Million
• Intrinsic Value = $6.11

SGX stock price is currently overvalue and furthermore a double top has been formed in stock chart. I am waiting SGX to retrace back to about $7.00 (61.8% Fibonacci Retracement Level) and re-assess the entry point again. SGX is a good stock for long term investment due to its monopolistic business and long term growth prospect in Singapore (as APAC key financial hub).