DBS way ahead while OCBC lags behind
DBS’ current Price to Book (P/B) ratio of 1.6x is at a record high and is 0.4x higher than the 10-year average P/B ratio of the three local banks of 1.2x (Figure 1). Meanwhile, UOB’s P/B ratio is at the 10-year average, while OCBC is lagging behind with a P/B ratio of 1.1x which is only slightly above the -1 standard deviation (s.d.) (Figure 2).
Time for OCBC to catch up
DBS’ share price is at an all-time high, with the difference between DBS’ P/B ratio and UOB’s and OCBC’s P/B ratio at a record high of 0.4x to 0.5x (Figure 3). However, UOB’s P/B ratio when compared to OCBC’s is relatively moderate, hovering at a difference of only 0.1x (Figure 4). DBS’ P/B ratio is currently way above the +1 s.d. and is at a record high (Figure 5), while UOB’s P/B ratio is at its 10-year average (Figure 6).
Source: Phillip Capital Research - 21 Jan 2022
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Created by traderhub8 | Jun 12, 2024
Created by traderhub8 | Jun 03, 2024