Stock Valuation: Standard Life Aberdeen Plc (SLA)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
STANDARD LIFE ABERDEEN PLC UK/
LSE
Financial Services – Insurance – Life – Insurance – Life GBP3.18
@ 22 Aug 2018
COMPANY PROFILE Standard Life Aberdeen PLC functions in the insurance industry. It provides long term savings and pensions, protection, healthcare and investment management products.

Standard Life Aberdeen PLC formerly known as Standard Life PLC provides a variety of investment services. The company operates in three customer channels: Standard Life investments, U.K. and Europe pensions and savings, and India and China. The Standard Life investments segment manages corporate retirement plans, pension schemes, and sovereign wealth funds and provides individual wealth management services. The U.K. and Europe pension and savings segment provides pension, savings, and flexible benefits to companies to offer to their employees. The India and China segment sells life insurance and group insurance products.

Stock Code SLA
Stock Valuation Below

Standard Life Aberdeen Price to Book

Price to Earnings, Price to Sales and Price to Cash Flow ratios all value a company based on what it is generating (i.e. profits, sales or cash flow). Price to Book ratio is different in that it values a company based on what it owns (i.e. its net assets). This is usually a suitable valuation indicator for a financial institution, which frequently revalues its assets and liabilities, or a company with huge asset base e.g. utilities company.
At the price of GBP3.18 as at 22 Aug 2018, Standard Life Aberdeen Plc is trading at a Price to Book Ratio of 1.1 times current book value.  This is a 12% discount to its historical average Price to Book Ratio of 1.3 times.
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Charts are from ProThinker Stock Report. Company description, historical financial statements data and price data are from gurufocus.com. Estimates are from gurufocus and/or 4-traders.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Just Group Plc (JUST)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
JUST GROUP PLC UK/
LSE
Financial Services – Asset Management – Asset Management GBP0.90
@ 21 Aug 2018
COMPANY PROFILE Just Group PLC is a financial services group. It is engaged in providing retirement income products and services to individual and corporate clients.

Just Group PLC offers retirement management services through products, advisory, and professional services.The company’s client base include individuals, financial intermediaries, corporate clients, and pension plan trustees. Its operations are underpinned by its automated underwriting, multi-channel distribution, variety of brands, and medical intellectual property. The firm offers de-risking solutions for pension scheme trustees who operate defined benefit pension schemes, long term care plans, individually underwritten retirement income products, and lifetime mortgages. Under the professional services umbrella, customers can also get regulated financial advice, consultancy and software development.

Stock Code JUST
Stock Valuation Below

Just Group Price to Book

Price to Earnings, Price to Sales and Price to Cash Flow ratios all value a company based on what it is generating (i.e. profits, sales or cash flow). Price to Book ratio is different in that it values a company based on what it owns (i.e. its net assets). This is usually a suitable valuation indicator for a financial institution, which frequently revalues its assets and liabilities, or a company with huge asset base e.g. utilities company.
At the price of GBP0.90 as at 21 Aug 2018, Just Group Plc is trading at a Price to Book Ratio of 0.5 times current book value.  This is a 37% discount to its historical average Price to Book Ratio of 0.7 times.
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Charts are from ProThinker Stock Report. Company description, historical financial statements data and price data are from gurufocus.com. Estimates are from gurufocus and/or 4-traders.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Taylor Wimpey Plc (TW.)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
TAYLOR WIMPEY PLC UK/
LSE
Consumer Cyclical – Homebuilding & Construction – Residential Construction GBP1.70
@ 21 Aug 2018
COMPANY PROFILE Taylor Wimpey PLC is a residential developer. It offers homes from apartments to five bedroom houses. It provides housing in United Kingdom and Spain.

Taylor Wimpey PLC is a British construction company that focuses on residential construction. It is one of the largest homebuilders in the United Kingdom, annually completing over 12,000 homes in the region as well as homes in Spanish cities such as Costa Blanca and Mallorca. It focuses on a wide range of residences, from apartment buildings to five-bedroom homes. Approximately 75% of the company’s new homes are single-family residences, followed by affordable housing projects. Taylor Wimpey provides a complete range of construction services, including land selection, design planning, construction, and remodeling. The company operates over 20 regional offices around the United Kingdom that focus on community developments and single-family homes.

Stock Code TW.
Valuation Analysis Below

Taylor Wimpey Price to EBIT

The Price Earnings (PE) Ratio is the most frequently used valuation indicator for a stock. However, there are times when this ratio cannot be used e.g. when the company reports a loss or profit is so minimal that it results in an abnormally high PE Ratio. Or Net Profit After Tax may be volatile and it is better to use Earnings Before Interest and Tax (EBIT) to value the company. We use the PE Band or Price/EBIT Band to show whether a stock is overvalued or undervalued based on its historical valuation.
At the price of GBP1.70 as at 21 Aug 2018, Taylor Wimpey Plc is trading at a Market Cap/EBIT Ratio of 6.8 times last 12 months earnings.  This is a 28.3% discount to its historical average Market Cap/EBIT Ratio of 9.4 times. (Price based on the historical average Market Cap/EBIT Ratio of the company is indicated by the red line.)
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Charts are from ProThinker Stock Report. Company description, historical financial statements data and price data are from gurufocus.com. Estimates are from gurufocus and/or 4-traders.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Kingfisher Plc (KGF)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
KINGFISHER PLC UK/
LSE
Consumer Cyclical – Retail – Apparel & Specialty – Home Improvement Stores GBP2.70
@ 21 Aug 2018
COMPANY PROFILE Kingfisher PLC is one of the largest home-improvement retail groups. The company operates more than 1,000 stores across Europe and Asia and retails brands such as B&Q, Screwfix, Castorama, Brico Depot, and Koctas.

Kingfisher is Europe’s largest home-improvement retail group and the third largest globally behind Lowe’s and Home Depot. With nearly 1,300 stores in 10 countries across Europe, Kingfisher generates annual sales of just under GBP 12 billion. Its main retail brands are B&Q and Screwfix in the United Kingdom and Castorama and Brico Depot in France. The company also operates the Koctas brand, a 50% joint venture in Turkey with Koc Holding. It sold its majority stake in its China business to Wumei Holdings, a Chinese retailer, in 2015.

Stock Code KGF
Valuation Analysis Below

Kingfisher Price to EBIT

The Price Earnings (PE) Ratio is the most frequently used valuation indicator for a stock. However, there are times when this ratio cannot be used e.g. when the company reports a loss or profit is so minimal that it results in an abnormally high PE Ratio. Or Net Profit After Tax may be volatile and it is better to use Earnings Before Interest and Tax (EBIT) to value the company. We use the PE Band or Price/EBIT Band to show whether a stock is overvalued or undervalued based on its historical valuation.
At the price of GBP2.70 as at 21 Aug 2018, Kingfisher Plc is trading at a Market Cap/EBIT Ratio of 8.3 times last 12 months earnings.  This is a 39.5% discount to its historical average Market Cap/EBIT Ratio of 13.8 times. (Price based on the historical average Market Cap/EBIT Ratio of the company is indicated by the red line.)
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Charts are from ProThinker Stock Report. Company description, historical financial statements data and price data are from gurufocus.com. Estimates are from gurufocus and/or 4-traders.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Legal & General Group Plc (LGEN)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
LEGAL & GENERAL GROUP PLC UK/
LSE
Financial Services – Insurance – Life – Insurance – Life GBP2.54
@ 21 Aug 2018
COMPANY PROFILE Legal & General Group PLC sells insurance products and other financial services. It transacts life assurance and longterm savings business, investment management and general insurance and health business.

Legal and General Group PLC sells insurance products and provides investment management services. The company runs four primary business lines based on product type. The retirement business, which generates more revenue than any other segment, sells annuities and other products to manage retirement income. The investment management business manages public and private pension funds. The capital business manages private equity and other alternative investments. The insurance business offers a range of insurance products, which includes life, disability, sickness, home, pet, travel, car, and lifestyle.

Stock Code LGEN
Stock Valuation Below

Legal & General Price to Book

Price to Earnings, Price to Sales and Price to Cash Flow ratios all value a company based on what it is generating (i.e. profits, sales or cash flow). Price to Book ratio is different in that it values a company based on what it owns (i.e. its net assets). This is usually a suitable valuation indicator for a financial institution, which frequently revalues its assets and liabilities, or a company with huge asset base e.g. utilities company.
At the price of GBP2.54 as at 21 Aug 2018, Legal & General Group Plc is trading at a Price to Book Ratio of 1.8 times current book value.  This is a 5% discount to its historical average Price to Book Ratio of 1.9 times.
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Charts are from ProThinker Stock Report. Company description, historical financial statements data and price data are from gurufocus.com. Estimates are from gurufocus and/or 4-traders.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.