Genting Singapore Limited's (SGX:G13) Price In Tune With Earnings

With a price-to-earnings (or "P/E") ratio of 19.2x Genting Singapore Limited (SGX:G13) may be sending bearish signals at the moment, given that almost half of all companies in Singapore have P/E ratios under 14x and even P/E's lower than 9x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Genting Singapore hasn't been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. It might be that many expect the dour earnings performance to recover substantially, which has kept the P/E from collapsing. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason. See our latest analysis for Genting Singapore SGX:G13 Price to Earnings Ratio vs Industry December 23rd 2025 Want the full picture on analyst estimates for the company? Then our free report on Genting Singapore will help you uncover what's on the horizon. How Is Genting Singapore's Growth Trending? The only time you'd be truly comfortable seeing a P/E as high as Genting Singapore's is when the company's growth is on track to outshine the market. If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 34%. Even so, admirably EPS has lifted 154% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth. Turning to the outlook, the next three years should generate growth of 16% each year as estimated by the analysts watching the company. That's shaping up to be materially higher than the 9.8% per year growth forecast for the broader market. With this information, we can see why Genting Singapore is trading at such a high P/E compared to the market. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future. What We Can Learn From Genting Singapore's P/E? It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator. As we suspected, our examination of Genting Singapore's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. Unless these conditions change, they will continue to provide strong support to the share price. Don't forget that there may be other risks. For instance, we've identified 1 warning sign for Genting Singapore that you should be aware of. Of course, you might also be able to find a better stock than Genting Singapore. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech