Wednesday, October 11, 2017

How Expensive is Alliance Global Group, Inc. (AGI) now fundamentally based on their June 2017 Quarterly Report?

Alliance Global Group, Inc. (AGI) was incorporated on October 12, 1993 and listed its shares on the Philippine Stock Exchange on April 19, 1999. AGI began operations in 1994 as a glass-container manufacturer after it acquired a glass manufacturing plant in Canlubang, Laguna. In 1999, the Company obtained approval from the Securities and Exchange Commission to broaden its primary business into that of a holding company. 

AGI is presently engaged in the food and beverage business (manufacturing and trading of consumer products); real estate (investment in and development of real estate, lease of properties, hotel operations and tourism resorts business); tourism-entertainment and gaming; and quick service restaurant business.

AGI's subsidiaries include Emperador Inc.; Megaworld Corporation; Travellers International Hotel Group, Inc.; and Golden Arches Development Corporation.


As of Oct 11, 2017, AGI was last traded price at 16.68Php. This is just 0.66 times lower compared to the recorded book value as according to their June 2017 quarterly report. In terms of this parameter, a value investor may find the market price to be quite a bargain.

In terms of P/E, the company recorded a trailing P/E of 11.42 meaning, for every 1PHP earning last 2016, investors of this company are willing or is paying 11.42Php. In terms of P/E, it seems like it's also in the range of not expensive yet but, let us take a look further on the company PEG ratio. With the P/E value and with a growth rate of just 5.8% from 2015 to 2016, the company trailing PEG ratio would be 1.97 which means, investors of this company are paying 11.42Php for every 1PHP income last 2016 for a growth rate of only 5.8%. In terms of this parameter, a value investor may find this share to be a bit overvalued since the PEG ratio is already more than 1. Fair value stocks usually have a P/E that is equal to the growth rate.

In terms of income, the first 6 months net income attributable to parent this year drop by 7.7% in comparison to last year first 6months net income.

Disclaimer: Trade or invest at your own risk.

<P.S> Are you in Singapore? Confused and hardly able to understand what I'm talking about? Message me on facebook. 

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