Benjamin Graham invented the Net Current Asset Value per Share – NCAVPS, which he used to determine the value of the company he invested in. Based on his formula, Raffles Medical Group (RMG)’s stock price is worth only $0.10, way below the $4.00+ currently traded at the Singapore stock exchange. Being one of my favourite stocks, let’s look into whether the company is undervalued or overpriced.
Market Trend
First of all, from a macro viewpoint, the healthcare sector is an evergreen industry because of Singapore rapidly ageing population. In the coming years, as Singaporeans grow older, the demand for quality healthcare will grow as well. In fact, in the past few years, the Singapore government has been implementing measures to address the bed crunch situation faced by many public and private hospitals. New hospitals will be built and collaborations between the public agencies and private hospital will be developed to alleviate the pressing issue...
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