The ambition of the Philippine Cemetery chain to create a new business center nationwide is worth up to 100 times the stock.
Golden MV Holdings Inc. reached that valuation last month, when its thinly traded stock soared to record highs. This is the most expensive stock on the Bloomberg World Real Estate Index, and it costs twice the proportion of other members. The PB ratio of the world gauge is less than 1.
Shares have soared more than 130% over the past year, promoting shareholder and controlling shareholder Manuel Villar Jr.
The company, published as Golden Haven in 2016, has attracted attention by expanding from cemeteries to affordable housing. Now, investors bet on its Villar City, a estate that is expected to reach ten times the still under development of New York Central Park.
The planned 3500 hectares of land are larger than Manila’s Makati and Bonifacio Global City commercial districts in total. The question is whether the potential is worth the valuation of gold MV.
When contacted by Bloomberg News, Golden MV quoted the Villar City Project, which is the reason for the keen interest of stock investors. The company is planning to change its name to Villar Land Holdings Corp. as it focuses on the project.
The current market value is over $26 billion. Last year, it became the largest stock in the Philippines, surpassing real estate company SM Prime Holdings Inc. By comparison, SM Prime trades at about 1.5 times the price.
Toby Allan Arce, an analyst at Globalinks Securities & Stocks Inc., said the stock’s more than 1,000 times lags 12 months’ earnings at a rate of more than 12 months.
Golden MV has no official analyst ratings or earnings estimates based on data that Bloomberg complies with. Free floating point counts less than 12% of its outstanding shares.
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