Singtel (Singapore Telecommunications Limited) needs no introduction, it is a familiar name for everyone. Based on its latest results, it seems like it was an excellent year for Singtel at a glance.

Record net profit + the whole year this up and that up, only Q4 down, why would the price keep falling?! It is currently at a 5 years low (based on ShareInvestor). Why?

The record net profit is largely bumped up by the divestment on Netlink Trust which was recorded as an exceptional item (gain) of $1.93 billion. If we were to remove this gain from the record net profit of $5.45 billion, we will get $3,500 billion which is lesser than FY 2017 $3,853 billion.

Once we adjust its net profit, it becomes more evident that Singtel is not trading as “cheaply”/undervalued as it is, with its previously inflated earnings/EPS. Using the given EPS of 33.40 cents would mean that some of you …