ComfortDelgro Ltd

Since the last blog on ComfortDelgro, the economy has been on the mend. As more people get vaccinated and with the spread within the community relatively well-controlled. Companies now have the liberty to get up to 75% of their their employees to work in office instead of working from home. Certainly, one of the expected beneficiaries of such change in the default mode of working is ComfortDelgro, which has the biggest slice of its business pie in Singapore. This also means the share price has passed its bottom and should be on its way up.

In the last blog, we estimate the floor price based on book value to be between $1.30 to $1.39. Given the stock is now on the upward trend, we will now use the discounted cash flow to make price projection going forward.

<<Discounted cash flow – CDG2021>>

As the point of writing the post, the stock price is at $1.78, approximately 6%-7% below the computed value, it is certainly a possible feat within the next few good quarters, and barring unforeseen circumstances. Unfortunately, CDG stock price movement has never been smooth-riding taking a few baby steps before falling in a big-step even though the general trend is upwards. Hence, it tends to take a longer time to reach the expected target price. DYODD.  

Happy investing!

Brennen has been investing in the stock market for 30 years. He trains occasionally and is a managing partner for BP Wealth Learning Centre. He is the instructor for two online courses on InvestingNote – Value Investing: The Essential Guide and Value Investing: The Ultimate Guide. He is also the author of the book – “Building Wealth Together Through Stocks” which is available in both soft and hardcopy.

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