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In April 2019, Ascendas Real Estate Investment Trust (SGX:A17U) announced its latest earnings update, which
indicated that the business gained from a small ailwind, eventuating to a single-digit earnings growth of 4.8%.
Below, I've laid out key growth figures on how market analysts view Ascendas Real Estate Investment Trust's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past.
Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Analysts' expectations for the upcoming year seems rather subdued, with earnings climbing by a single digit 2.0%.
The following year doesn't look much more exciting, though earnings does reach S$583m in 2022.
While it’s useful to understand the rate of growth each year relative to today’s level, it may be more valuable estimating the rate at which the earnings are growing every year, on average. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Ascendas Real Estate Investment Trust's earnings trajectory over time, which may be more relevant for long term investors.
To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 4.1%. This means that, we can presume Ascendas Real Estate Investment Trust will grow its earnings by 4.1% every year for the next few years.
For Ascendas Real Estate Investment Trust, there are three key factors you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is A17U worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether A17U is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of A17U? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.