Stock Analysis: Public Bank

Public Bank (PUBM:KLSE) is one of the stock that beat the market performance.



Solid quarterly performance from Q4 06 until Q3 07 due to NPM improved from 20% to 23% as shown in the table below.


PE analysis result:
Based on the projection of 20 analysts (referring to Business Week as source), the annual EPS is estimated as RM0.59. Thus, the fair value price is RM10.00. (Average of Historical PE x Projected EPS)



From business perspective, the average ROE and ROA over past 4 years is 9.6% and 1.7% respectively. While the shareholder's equity per share and net tangible Asset (NTA) is about the same, which is RM2.61 and RM2.69 respectively for year 2006.
Here is the Deal:
OKII recommend to HOLD Public Bank at present as it is not the right to buy in yet. However, with the rising market of property in Malaysia will eventually help to contribute on its revenue in coming year of 2008.

Link to spreadsheet analysis and business week source for Public Bank.