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Stock Track | Keppel Plummets 3.02% Intraday on Valuation Concerns and High P/E Ratio

Stock Track07-14 09:12

Keppel's stock price fell 3.02% during intraday trading on Tuesday, as investors reacted to concerns about the company's valuation metrics despite positive business developments.

The decline comes after news that Keppel has fully committed all five fibre pairs in its Bifrost Cable System through an agreement with a global hyperscaler. However, valuation analysis shows Keppel trades at a P/E ratio of 19.7x, which is significantly above the estimated fair ratio of 15.8x and well ahead of the Asian Industrials average of 12x.

Market participants appear concerned that the stock's current valuation leaves "less room for error if expectations are not met," particularly given risks mentioned in recent analysis including potential delays or weaker pricing on the company's $14.4 billion non-core asset sales portfolio.

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  • TK63
    ·07-15 09:25
    Big fish want to ask retailers to sell and they will accumulate low. That's why they say this high and that high. When price is bashed to low, big fish will push it up again saying undervalue, long term with Target price of $20++ etc... very snaky big fish
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  • RichDen
    ·07-14 10:21
    Profit taking become investor concern??? No logic.... this is a Temasek backed company... whats the concern?... Keppel have strong financial report.... and is if not no.1 ... will definitely be No.2 is the world in this sector.... the Company is doing very well.... is those fund manager that cause this.
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