Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

CapitaLand's Valuation Looks Too Low

Even though CapitaLand (OTCPK:CLLDY) (CATL.SI) has established a reputation for itself as a quality property developer in Singapore and China, investors seem to be more scared of the near-term risks in Singapore and China than attracted to the long-term potential. Trading well below its average and median price/book and price/RNAV ratios, investors seem to be incorporating pretty pessimistic expectations for the business both in 2014 and beyond. Readers considering these shares today need to appreciate the risks of swimming against the tide, but patience could pay off given the company's leverage to China's growth and management's commitment to streamline and improve operations.

Focused On Two Principal Markets

CapitaLand has developed properties and held investments around the world, but...

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