5 Undervalued Singaporean Stocks to Buy Now for 2025 Returns

Vs. 10 Overvalued Stocks to Avoid

Introduction

Singapore’s stock market presents a vast array of investment opportunities. However, identifying undervalued companies amidst the market volatility can be challenging. To assist investors, we have conducted thorough research to unveil five undervalued Singaporean stocks that are poised for significant returns by 2025. Additionally, we present ten overvalued stocks that investors should avoid.

Primary keyword: What Stocks to Buy Now in Singapore

Secondary keyword: Undervalued Singaporean Stocks

H1. Top 5 Undervalued Singaporean Stocks

1. DBS Group Holdings (DBS.SG)

• Price-to-earnings ratio (P/E): 11.53
• Dividend yield: 4.0%

DBS Group Holdings is Singapore’s largest bank and one of the leading financial institutions in Asia. The company’s strong financial performance and consistent dividend payments make it an attractive investment.

2. Singapore Telecom (SingTel.SG)

• P/E: 10.92
• Dividend yield: 4.5%

Singapore Telecom is Singapore’s leading telecommunications provider with a strong presence in the region. The company’s expanding digital services and focus on innovation position it well for future growth.

3. CapitaLand Integrated Commercial Trust (CICT.SG)

• P/E: 12.25
• Dividend yield: 5.0%

CapitaLand Integrated Commercial Trust is a real estate investment trust (REIT) that owns a portfolio of high-quality commercial properties in Singapore and other Asian countries. The company’s stable rental income and development potential make it an attractive income-generating investment.

4. Wilmar International (WIL.SG)

• P/E: 10.06
• Dividend yield: 2.5%

Wilmar International is a global agribusiness company that is involved in the cultivation, processing, and trading of agricultural products. The company’s strong market position and exposure to growing global demand for food make it a compelling investment.

5. Sembcorp Industries (SCI.SG)

• P/E: 12.07
• Dividend yield: 4.0%

Sembcorp Industries is a diversified company with operations in energy, water, and marine engineering. The company’s focus on renewable energy and digitalization make it an attractive long-term investment.

Transition: While these undervalued stocks provide potential returns, it is equally important to identify and avoid overvalued stocks.

H2. 10 Overvalued Singaporean Stocks to Avoid

1. ComfortDelGro Corporation (CDG.SG)

• P/E: 22.46
• Dividend yield: 1.5%

2. Golden Agri-Resources (GGR.SG)

• P/E: 16.47
• Dividend yield: 2.0%

3. Sheng Siong Group (SSG.SG)

• P/E: 27.08
• Dividend yield: 2.5%

4. Frasers Property (FPL.SG)

• P/E: 16.99
• Dividend yield: 3.0%

5. City Developments (CDL.SG)

• P/E: 17.45
• Dividend yield: 3.5%

6. Singapore Airlines (SIA.SG)

• P/E: 21.67
• Dividend yield: 1.0%

7. Jardine Matheson (JM.SG)

• P/E: 19.32
• Dividend yield: 2.0%

8. Oversea-Chinese Banking Corporation (OCBC.SG)

• P/E: 15.37
• Dividend yield: 3.0%

9. United Overseas Bank (UOB.SG)

• P/E: 14.95
• Dividend yield: 3.5%

10. CapitaLand Investment (CLI.SG)

• P/E: 18.26
• Dividend yield: 3.0%

Conclusion

In the ever-evolving Singaporean stock market, identifying undervalued stocks and avoiding overvalued ones is crucial for achieving long-term investment success. By focusing on companies with strong fundamentals, competitive advantages, and undervalued valuations, investors can position themselves to reap significant returns by 2025.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Investors should always conduct their own research and consult with a financial advisor before making any investment decisions.

Table 1. Undervalued Singaporean Stocks

Table 2. Overvalued Singaporean Stocks

Table 3. Undervalued vs. Overvalued Singaporean Stocks

Table 4. Singaporean Stock Market Outlook