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Ascott Residence Trust’s (
SGX:A68U
) released its most recent earnings update in December 2018, which suggested that the company faced a immense headwind with earnings falling by -34%. Below, I’ve laid out key growth figures on how market analysts predict Ascott Residence Trust’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for Ascott Residence Trust
Market analysts’ prospects for this coming year seems pessimistic, with earnings falling by -3.4%. But in the following year, there’s contrast in performance, with earnings growth rates generating double digit 3.4% compared to today’s level before declining. to S$132m in 2022.
SGX:A68U Future Profit February 1st 19
While it’s informative knowing the rate of growth each year relative to today’s figure, it may be more valuable estimating the rate at which the earnings are growing on average every year. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of Ascott Residence Trust’s earnings trajectory over time, fluctuate up and down. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 1.5%. This means, we can expect Ascott Residence Trust will grow its earnings by 1.5% every year for the next few years.
Next Steps:
For Ascott Residence Trust, I’ve compiled three key factors you should look at:
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 A68U 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 A68U is currently mispriced by the market.
Other High-Growth Alternatives
: Are there other high-growth stocks you could be holding instead of A68U? Explore
our interactive list of stocks with large growth potential
to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
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