How Expensive is Megaworld Corp. (MEG) Fundamentally? 3rd Quarter Update

Megaworld Corporation was incorporated on August 24, 1989 to engage in the development of large scale, mixed-used planned communities or townships that integrate residential, commercial, leisure and entertainment components. The Company is also engaged in other property-related activities such as project design, construction oversight and property management. On August 19, 1999, the Company changed its corporate name to the present one to coincide with its conversion from a purely real estate company into a holding company, although MEG continues to focus on its core competence in real estate development.

MEG's real estate portfolio includes residential condominium units, subdivision lots and townhouses, condominium-hotel projects as well as office projects and retail spaces. Since its incorporation in 1989, the Company and its subsidiaries and associates have launched approximately 371 residential buildings, office buildings and hotels consisting in aggregate of more than 6,786,146 square meters of floor area.

As of December 31, 2015, the Company's subsidiaries and associates include Empire East Land Holdings, Inc.; Global-Estate Resorts, Inc.; Suntrust Properties, Inc.; Paseo Center Building Administration, Inc.; Richmonde Hotel Group International Limited; Bonifacio West Development Corporation; Suntrust Home Developers, Inc.; and Palm Tree Holdings & Development Corporation.

As of December 12, 2016, MEG was last traded price at PHP 3.58. This is 7.73% lower compare to their recorded book value as according to their September 2016 financial report. I guess it's not yet expensive since the market price is lower than its book value.

In terms of P/E, the company recorded a trailing P/E of 11.19 meaning, for every 1PHP earning last 2015, investors of this company are willing or is paying 11.19Php to which is not expensive yet. But, with a negative growth rate since EPS dropped from 0.66 to 0.31 from 2014 to 2015 respectively, the company trailing PEG ratio would also be negative which means, investors of this company are paying 11.19Php for every 1Php income last 2015 even though the company grows negatively from 2014 to 2015.

In terms of income, the first 9 months net income attributable to parents this year increases by 11% in comparison to last year first 9 months net income.

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