Universal Robina Corporation

As of Nov.
22, 2019
SOPHIA ELLAINE Y. LOPEZ

BSMA 2B
MR. NOVO ALFANTE
EPS: 4.17
Price Per Share: P154
Book Value: P39.28
Outstanding Share: 2,204,161,868
Annual Dividend: P1.65
Net Income: 9,204,306,540
1. PE RATIO
𝑷𝒓𝒊𝒄𝒆 𝒑𝒆𝒓 𝑺𝒉𝒂𝒓𝒆
𝐏𝐄 𝐑𝐚𝐭𝐢𝐨 =
𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝑷𝒆𝒓 𝒔𝒉𝒂𝒓𝒆
154.00
= 𝟑𝟔. 𝟗𝟑
4.17
2. MARKET VALUE TO BOOK VALUE

𝑴𝒂𝒓𝒌𝒆𝒕 𝑷𝒓𝒊𝒄𝒆 𝒑𝒆𝒓 𝒔𝒉𝒂𝒓𝒆
𝐏𝐫𝐢𝐜𝐞 𝐭𝐨 𝐁𝐨𝐨𝐤 𝐫𝐚𝐭𝐢𝐨 =
𝑩𝒐𝒐𝒌 𝑽𝒂𝒍𝒖𝒆 𝒑𝒆𝒓 𝒔𝒉𝒂𝒓𝒆
154.00
=3.92
39.28
3. EARNINGS PER SHARE
𝑻𝒐𝒕𝒂𝒍 𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝑨𝒕𝒕𝒓𝒊𝒃𝒖𝒕𝒂𝒃𝒍𝒆 𝒕𝒐 𝑪𝒐𝒎𝒎𝒐𝒏 𝑺𝒉𝒂𝒓𝒆𝒔
𝑬𝑷𝑺 =
𝑶𝒖𝒕𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝑪𝒐𝒎𝒎𝒐𝒏 𝑺𝒉𝒂𝒓𝒆
9,204,306,540
= 4.17
2,204,161,868
4. YIELD
𝑨𝒏𝒏𝒖𝒂𝒍 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅
𝒀𝒊𝒆𝒍𝒅 =
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑺𝒕𝒐𝒄𝒌 𝑷𝒓𝒊𝒄𝒆
1.65
= . 𝟎𝟏𝟎𝟕 𝐨𝐫 𝟏. 𝟎𝟕%
154
ANALYSIS
1. PE RATIO
The price to earnings ratio indicates the expected price of a share based on its earnings. As a company’s
earnings per share being to rise, so does their market value per share. A company with a high P/E ratio
like URC usually indicated positive future performance and investors are willing to pay more for this
company’s shares. A company with a lower ratio, on the other hand, is usually an indication of poor
current and future performance. This could prove to be a poor investment. In general a higher ratio means
that investors anticipate higher performance and growth in the future. It also means that companies with
losses have poor PE ratios. An important thing to remember is that this ratio is only useful in comparing
like companies in the same industry. Since this ratio is based on the earnings per share calculation,
management can easily manipulate it with specific accounting techniques.
2. Market Value to Book Value

A Market Value to Book Value ratio can indicate if the company is going well. If the ratio is higher than
1, like Universal Robina Corporation, it can be concluded that the value of this stock is overvalued. It
means that the company is performing well. A low ratio could also indicate that there is something wrong
with the company. This ratio can also give the impression that you are paying too much for what would
be left if the company went bankrupt.
3. Earnings per Share

EPS is a relative measure, and it can’t be viewed in isolation. There are many factors that come into play
when analyzing EPS.
4. Dividend Yield
The dividend yield formula is used to determine the cash flows attributed to an investor from owning
stocks or shares in a company. Therefore, the ratio shows the percentage of dividends for every dollar of
stock. A high or low yield depends on the industry and the business life cycle of the company. In URC,
the company is willing to give back, just 1.65 per share or it is 1.07%.
Is Share of URC a GOOD buy? Or BAD buy?
In buying of stock, there are few things we need to look. The first of course is the price. Price is the
number one factor to consider when you’re making any investing decision. It doesn’t matter if you’re
buying a stock at a higher price, that doesn’t mean that it is a good investment, it still do not determine if
you’re going to win or lose in your investment. Like in the URC, The current price is P154.00; it is really
far away from its book value. It means that there is growth in the Company, but still, it does mean that it
is a very good investment.
Another factor is analyzing the company’s net worth, you can get this by adding the entire asset then
deducting all the liabilities and this will give you the real worth of the company. Earnings per share is the
same as any profitability or market prospect ratio. Higher earnings per share are always better than a
lower ratio because this means the company is more profitable and the company has more profits to
distribute to its shareholders
Although many investors don’t pay much attention to the EPS, higher earnings per share ratio often make
the stock price of a company rise. Since so many things can manipulate this ratio, investors tend to look at
it but don’t let it influence their decisions drastically.
No amount of calculation will ever allow you to know for sure that a stock is a sure thing. But these
components are good tools for new investors trying to determine whether a stock is a good value buy or
not.

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As of Nov.

SOPHIA ELLAINE Y. LOPEZ

Price Per Share: P154

Book Value: P39.28

Outstanding Share: 2,204,161,868

Annual Dividend: P1.65

Net Income: 9,204,306,540

2. MARKET VALUE TO BOOK VALUE

2. Market Value to Book Value

3. Earnings per Share

Is Share of URC a GOOD buy? Or BAD buy?

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