How expensive SMPH fundamentally based on their March 2020 financial report?

SM Prime Holdings, Inc. (SMPH) was incorporated on January 6, 1994 to acquire and develop real estate, conduct and maintain commercial shopping centers including shopping center spaces for rent, amusement centers, movie or cinema theaters, and to construct and manage buildings such as condominium, apartments, hotels, restaurants, stores and other structures for mixed use purposes. The Company has now four business units, namely, malls, residential, commercial, and hotels and convention centers.

As of December 31, 2018, SMPH has 72 malls in the Philippines and seven shopping malls in China. The malls in China are located in the cities of Xiamen, Jinjiang, Chengdu, Zibo, Chongqing, Tianjin, and Suzhou. The Company has 44 residential projects, 13 commercial projects, six hotels, four convention centers and three trade halls. SMPH also owns Sky Ranch, an amusement park in Tagaytay City and within SM City Pampanga.

Among the Company's subsidiaries are SM Development Corporation; Costa del Hamilo, Inc.; Highlands Prime Inc.; Tagaytay Resort Development Corporation; SM Arena Complex Corporation; SM Hotels and Conventions Corp.; and SM Land (China) Limited.

As of June 9, 2020, SMPH was last traded at 33.5php per share. SMPH is one of the listed company. Its market price dropped by at least 20% from its 52 week high, largely because of the COVID19 pandemic, but is it now fundamentally cheap to buy?

In terms of P/E, SMPH recorded a trailing P/E of 25.38, meaning, for every 1php earning last 2019, investors of this company are willing or is paying 25.38php. With a 25.38 P/E and with a growth rate of 17.8% (change in EPS) from 2018 to 2019, the company trailing PEG ratio would be 1.42, which would be considered a bit of overvalued. A PEG ratio that is more than 1 is generally considered as overvalued.

In terms of book value per share, the current market price is currently 3.2 times higher than the book value as recorded in their March 2020 financial report, meaning the company is still perceived to be 3.2 times higher compare to the real worth of the company. It seems in terms of this parameter, it’s still overvalued

In terms of income, as per their March 2020 financial statement, expectedly due to COVID19 dropped by 5.4%.

Is this a good stock to accumulate fundamentally in this pandemic period? Based on the indicators above, it seems not good since even though the price dropped, it is still under the range of overvalued.

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