UBP - UNION BANK OF THE PHILIPPINES
LAST TRADE PRICE = PHP 121.9000
LAST TRADE DATE: 02/08/13
P/E RATIO TEST:
2009 Earnings-per-share = PHP 6.7400
2010 Earnings-per-share = PHP 8.3500
2011 Earnings-per-share = PHP 10.2800
2012 Interim Earnings-per-share (9 months ending September 2012) = PHP 13.1300
Average earnings-per-share (based on the past 3 years and 3 quarters) = PHP 10.7192
Average price earnings ratio (based on the past 3 years and 3 quarters) = 11.37
Result of Graham's price-earnings ratio test: PASSED
Benjamin Graham recommends current price no more than 15 times average earnings.
However, P/E <15 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.
PRICE-TO-BOOK RATIO TEST:
Total Equity = PHP 46,581,384,000
Outstanding Shares = 641,422,420
Book-Value per Share = 72.62
Price-to-Book ratio (PB) = 1.68
Result of Graham's price-to-book ratio test: FAILED
Graham recommends that current price should not be more than 1.5 times the book value last reported.
However, P/B <1.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.
Moreover, average earnings to book ratio (similar to return on equity) = 14.76%
Moreover, total liabilities is greater than equity.
Total liabilities to equity ratio = 3.89
This company is relatively highly leveraged.
GRAHAM'S "BLENDED MULTIPLIER" TEST:
P/E = 11.37
P/B = 1.68
P/E*P/B = 19.09
Result of Graham's "blended multiplier" test: PASSED
Graham suggests that the product of P/E and P/B should not exceed 22.5.
However, P/E*P/B <22.5 should be taken as an arbitrary value. Ratios do not tell us the whole story by itself. It is more useful to compare the ratios of one company to other companies in the same industry.
LIMITATION OF ANALYSIS:
1. EPS calculation does not isolate "extra-ordinary income".
2. Analysis does not cover earnings stability, dividend records, earnings growth and futures earnings (or forward P/E ratio).
3. For future plans and prospects, read below reference.
REFERENCE:
http://www.pse.com.ph/resource/corpt/201...ep2012.pdf
http://www.pse.com.ph/resource/corpt/201...ec2011.pdf
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The opinions/ analysis expressed in this material are written in good faith, but absolutely no representation or warranty, expressed or implied, is made as to their accuracy or completeness.
This material may contain significant errors or significant omissions. The author's/ writer's investment thesis could be significantly flawed or his/ her assumptions could be significantly inaccurate or maybe disregarding certain significant risks. The author/ writer hereby expressly disclaims any responsibility for error, omission or inaccuracy in the information, misinterpretation and any all loss, disappointment, negligence or damage caused by reliance on this information.
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