To Yeo, the valuation for Jumbo is “mispriced” and that the market has overvalued the stock.
DBS Group Research analyst Alfie Yeo has maintained “fully valued” on Jumbo Group with a target price of 21 cents, which represents a 36% downside on the stock as at his report dated May 19.
“Our target price of 21 cents is pegged to -1.5 standard deviation (s.d.) of its historical average forward price-to-earnings (P/E)”, says Yeo.
