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Hi PL,
I think your PB chart is fantastic except the year prior to 2008. I think it could be due to the rights. DBS has announced Rights issuance in 2008 at that time. So you may need to adjust for that.
Hello, thanks! I relooked the DBS annual report. On page 84, there is mention of the rights and the number of shares as of 31 Dec is 1587mil. On page 138, the number of shares is 1962mil. Which number is the one that will be correct in this case? How should I take into account for Rights issuance in the Annual reports in general?
Thanks again!
You may use the 1,962m figures since there are more shares after the Rights issuance which need to be adjusted backward. If you’re feeling lazy, I think past ten years of data is sufficient. Remember the valuation of PB chart serves us as a quick rule of thumb for the current valuation, so we don’t really need to be precise but rough estimate is sufficient.
Thanks!
Thanks!
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