Investors have aggressively traded shares of construction firms in recent years, lifting valuation of these companies. State-owned construction firm Pembangunan Perumahan (PTPP), for example, is now valued 5.5 times its equity as at June 30, 2014, and traded with PE multiple 38 even though the company’s return on equity (annualized) was only 14.7%.
To subscribe please click here
