AEV
28 August 2007Aboitiz Equity Ventures is the listed holding company of the Aboitiz family. Their interests include food manufacturing, power and electricity production, transport systems as well as banking. The Aboitiz family now has 3 listed companies in the exchange (4 including AEV) wherein AEV has an interest in.
These companies i am mentioned above are Aboitiz Power (AP), Unionbank of the Philippines (UBP), and Aboitiz Transport System (ATS)
With the recent downturn of the market, a lot of people have focused back on the fundamentals and a lot of the people i know are looking for good companies which might be undervalued relative to earnings, assets, or even both.
Given the 3 companies listed above, their market prices and fair value estimates should give us a pretty good idea what AEV should be worth per share.
Starting off with Unionbank:
AEV owns 231,593,451 shares of UBP. Fair value estimate would be Php 45/share which would give us Php 10.42B. (AEV lists these shares in their books at Php 4.184B only)
Aboitiz Power:
AEV owns 5,400,000,000 shares (i don’t know if this is the same # of shares after the IPO) and given a fair value estimate of the shares of Php 4.50/share we get an amount which equates to Php 24.3B.
Aboitiz Transport System:
AEV owns 1,889,482,107 shares and a fair value estimate of Php 1.20/share gives us Php 2.26B
Adding these up gives us Php 36.98B and dividing it by AEV’s # of shares gives us Php 6.50 per share.
Though foreign entities have a 20% holding company discount in their analysis, i did not put in a discount because of the fact that AEV has a lot of other businesses and assets which are not listed. This coupled with the fact that they have around Php 10B in cash makes up for a pretty large discount already. (much larger than the 20% that foreigners use in their analysis)
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