A Philippine cemetery chain is making waves in the business world with its ambitious vision for a new urban hub, resulting in its stock trading at an astonishing 100 times book value. Since going public in 2016 under the name Golden Haven, the company has successfully diversified from traditional cemeteries into the realm of affordable housing. Now, all eyes are on its flagship project, Villar City, which aims to be ten times the size of New York’s Central Park and is currently under development.
Villar City: A Game Changer for Philippine Real Estate
The sprawling 3,500-hectare Villar City is set to outsize the commercial districts of Makati and Bonifacio Global City combined. As it continues to take shape, investors are curious whether the projected growth justifies Golden Haven’s staggering valuation, which currently stands at over $26 billion.
- Market Capitalization: Over $26 billion
- Comparative Valuation: SM Prime Holdings trades at approximately 1.5 times book value
- Earnings Multiple: Golden Haven’s stock has a trailing 1,000 times earnings multiple
Speculative Valuation Concerns
Despite its impressive growth trajectory, some analysts express skepticism. Toby Allan Arce, an analyst at Globalinks Securities & Stocks Inc., remarked that the stock’s valuation seems speculative and is significantly reliant on anticipated cash flows from Villar City and similar developments. “Its valuation is speculative, resting heavily on projected cash flows from Villar City and similar assets,” he noted.
Investors are weighing the potential of this ambitious project against the current market dynamics, leading to discussions about the sustainability of such high valuations in the long term. As Golden Haven pushes forward with its plans, it remains to be seen if the company’s vision will translate into tangible profits and justify its current standing in the market.
In summary, as Golden Haven continues to innovate and expand its portfolio, the real estate sector in the Philippines watches closely, pondering whether this cemetery chain will redefine urban living or if its stock valuation will face a reality check.
