Comparison will be done with Tung Lok Restaurants (540)
1) IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.- Price to book ratio : 5.635 (463.5% Above fair value) 540 – 1.874
- Price to earning ratio : 81.826 ( Above industry standard – 86.29) 540 – 78.667
- Debt To Equity : 0.27% | 22.4%
- Growth Performance : -8.55 | Not given
- Dividend Yield : 2.77% [ 5 years] | 0% [ Doesn’t pay]
- Current Ratio : 2.27 |1.44
- Book Value per share : 0.0337 | 0.0577
- Cash Flow per share : 0.0078 [Having negative cashflow for past 4 years]| 0.0208 (540) [3/5 years of positive cash flow]
- Weak management ability (No progressive Dividend Growth | Low net income/gross profit margin growth | Negative...