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Some Amendments to my SPH Sum of the Parts Valuation

Yesterday, I wrote about my short exercise to value SPH using sum of the parts.

I realize I was not vigilant enough and missed out 3 segments:

  1. The Orange Valley Healthcare
  2. The REIT Property Management
  3. The Potential Future Development

#1 and #2 are tangible to compute at this point so I added into my SPH Valuation article written yesterday.

The REIT property management would probably add $150 mil to the valuation. SPH couldn’t possibly sell it off, since another asset management firm would be able to manage 3 more retail properties. However, this is to factor in the recurring cash flow that comes into the business.

We can conservatively add $108 mil for Orange Valley Healthcare. The future potential for this could be more.

With this, the revised SOTP value we derived is $3685 mil or $2.30 per share. Currently, SPH is trading at 14% above this price at $2.67.

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Wednesday 9th of May 2018

Hi Kyith,

So based on the answers you got at the EGM . Do you still think its a good deal ?


Wednesday 9th of May 2018

Not sure about this. A good deal is one that you can tell outright its a good deal.

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