How do i determine Fair value? - Dividend Machines by The Fifth Person

Q&A › Category: Dividend Stocks › How do i determine Fair value?

Xu Chao asked 4 months ago

Greetings Trainers, i went through the trainings but im not quite sure how to determine the fair value for Hong Kong stocks. i watched the meet-ups and realize that link reits is severely underpriced, i saw how Victor determines fair value by comparing Singapore banks with Singapore savings bonds, which determines the fair value for Singapore banks, may i know how to determine the fair/under/over value for companies like link reits, AIA group and Ping an insurance? Thank you!

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1 Answers

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Rusmin Ang Staff answered 4 months ago

Hi Xu Chao, We use historical yield to gauge undervalued, fair value and over valued price. Undervalued price is calculated based on the average of two reference points for historical high yield. Overvalued price is derived based on the average of two reference points for historical low yield. Fair value is the average yield of both average high and average low yield. You can get their high and low yield on the watchlist page.

Xu Chao replied 4 months ago

Thank you Rusmin!