Raffles Medical Group *Official* (SGX: BSL)

Carnage

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Let's take a look at the PE of healthcare stocks in Singapore.

- IHH (82.1)
- RMG (35.4)
- Q&M Dental (32)
- International Healthway (12)

The super expensive one is IHH? :s11:
By the same argument, Healthway must be the cheapest.

Let's all go buy Healthway then. :s22:

I'm reminded of what Warren Buffet has to say "price is what you pay, value is what you get".
 

koxinga

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By the way, buying a physical house or real asset vs. buying a developer vs. buying a REIT is most definitely NOT the same. The difference is so fundamental and obvious.

It is different, I know. Maybe I dunno how to describe what I want to say. The first question is do I want to be exposed to this sector. The second question is what asset class do I want to use if I want to be exposed to the sector(House, Equity, REIT).

Your point is basically it is an apple versus orange comparisons between you compare let's say houses versus REITs because they are completely different animals. I understand that. But I don't have money to buy Reflections at Keppel, but have money to buy Keppel Land. It is not the same, but gives me exposure to the property sector (at different levels of risk as well as returns).
 
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koxinga

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By the same argument, Healthway must be the cheapest.

Let's all go buy Healthway then. :s22:

I'm reminded of what Warren Buffet has to say "price is what you pay, value is what you get".

PE is a ratio of two factors. Lousy earnings can drag down PE as much as an exuberant market get pull up the PE. It's like whether getting something below book value is good or bad. Can be either case.

At the end of the day, ratios are useful as a filter or a quick acid test. Need to understand the business and company better.
 

Some-one

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Looking at some of the arguments here, I would like to say that P/E is not a good gauge on how a sector is good or how a stock is undervalue. PE is made up of price and eps. Price fluctuates by demand and supply and eps is calculated using historical values. By using price in the equation, it already breaks the usefulness of PE.

Of course, there is no one single measurement that would determine if a stock is overvalue or undervalue. For me, I would normally use a combination of ratios but more importantly is the art of seeing how a business would perform in the future by reading the Chairman and CEO statements in the annual report. If you all have read the annual report, you would have realise that RMG has an insurance business.

If you all don't know how profitable is insurance business, you might want to read up on it. It is recurring revenue for RMG. Though it forms only a small portion of RMG's business, I can see the prospects of it. :)
 

Some-one

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PE is a ratio of two factors. Lousy earnings can drag down PE as much as an exuberant market get pull up the PE. It's like whether getting something below book value is good or bad. Can be either case.

At the end of the day, ratios are useful as a filter or a quick acid test. Need to understand the business and company better.
Sorry, lousy earnings would bring up PE, not drag it down...:)
 

blackvice

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I took the figures from sharejunction. I also remembered IHH having high PE bcos I used to be vested before.

I understand Mount Elizabeth and Gleneagles Hospital are super elite private hospitals, but 82 times is really......:s22:

I guess u r right. Cannot compare hospitals with clinics.

thats why you are vested with plife reit instead ?:o
 

Carnage

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Investing style different.

Why would he bother with RMG when their payout ratio is so low.
 

MikeDirnt78

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Why not have the best of both worlds?

Accumulate both RMG and Plife. :D
 

chopra

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median.png
 

Keverus

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There must be a reason why the healthcare sector is commanding a much higher PE in Asia. The demand and growth must be there to support the higher valuation in these medical stocks. So far the results of RMG has proven its steady growth.


qft.........
 

MikeDirnt78

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bump this thread.

seems alot of retailers are accumulating this company. volume is low but share price is rising.
 

salesgp

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ir is not doing a good job of communicating to prospective shareholder.

Give me some reasons to invest in RMG.
 

MikeDirnt78

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ir is not doing a good job of communicating to prospective shareholder.

Give me some reasons to invest in RMG.

how much do you have to invest? more than 100k? if not, tell us a good reason why they should reply you? for a strong company like RMG, the IR probably has tons of questions from retail investors and students who are doing school research.

anyway you can choose not to buy because they have a lousy IR.
 

salesgp

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how much do you have to invest? more than 100k? if not, tell us a good reason why they should reply you? for a strong company like RMG, the IR probably has tons of questions from retail investors and students who are doing school research.

anyway you can choose not to buy because they have a lousy IR.


the no.1 rule of a public listed company is to communicate publicly with relevant information to your prospective shareholder.
 
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