List Of 20 Cheap PSE Index Stocks To Build Your Portfolio Around | The Investing Engineer

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List Of 20 Cheap PSE Index Stocks To Build Your Portfolio Around

cheap pse index stocks

When stocks go down, investors love it because stocks go on a "SALE". Sale means that the stock is trading below its intrinsic value. In other words, stocks are cheap.

I love to buy stocks when they are cheap and right now, I found a handful of them in the PSEI.

I've listed them below including the assumptions I made.

  • check
    Average 10-yr. return on equity as long-term growth rate projection.
  • check
    Average 10-yr. price to book value (P/BV) as fair value multiple multiplied by the projected book value.

List Of Cheap PSE Index Stocks As Of March 21, 2018

Ticker

Price

P/BV

Fair Value

Target Price

% Upside

% CAGR

SM

₱930.50

2.53

₱958.31

₱1,364.11

46.60%

13.60%

ALI

₱39.75

3.19

₱45.19

₱64.02

61.06%

17.22%

BPI

₱109.20

2.40

₱115.90

₱173..25

58.65%

16.63%

AEV

₱68.05

2.52

₱71.33

₱127.88

87.92%

23.40%

MBT

₱84.15

1.27

₱89.33

₱121.51

44.40%

13.03%

TEL

₱1,470.00

2.69

₱2,366.35

₱5,036.22

242.60%

50.75%

ICT

₱104.70

2.21

₱127.13

₱182.47

74.28%

20.34%

GTCAP

₱1,211.00

1.29

₱1,887.25

₱2,653.58

119.12%

29.89%

MPI

₱5.27

1.04

₱7.15

₱8.98

70.40%

19.44%

LTG

₱18.68

1.41

₱23.92

₱31.72

69.80%

19.30%

AP

₱37.50

2.47

₱44.72

₱87.52

133.37%

32.64%

MEG

₱4.64

1.10

₱4.73

₱6.51

40.29%

11.95%

PGOLD

₱52.60

3.09

₱69.44

₱103.34

96.47%

25.25%

DMC

₱12.60

2.27

₱15.29

₱29.65

135.31%

33.01%

RRHI

₱84.75

2.34

₱121.40

₱168.38

98.68%

25.71%

AGI

₱13.42

0.52

₱36.29

₱52.37

290.22%

57.44%

RLC

₱19.50

1.21

₱25.04

₱34.74

78.18%

21.23%

SCC*

₱29.70

3.77

₱40.69

₱96.29

208.61%

45.59%

PCOR

₱8.75

1.01

₱12.86

₱15.71

79.56%

21.54%

FGEN

₱16.30

0.64

₱23.72

₱30.63

87.90%

23.40%

* Adjusted the book value figure on calculations. From 33.02 (PSE Edge data) it was adjusted to 8.27 (Morningstar data). Thus, intrinsic value calculation changed.

Tips on indexing:

  • I strongly advise that you diversify. Don't put all your money in a single stock. For example, if you have ₱200k buying power, then buy ₱10k worth of stocks in each company.
  • However, if you're confident at a particular stock, then you can choose to go all in. Otherwise, stick with diversification w/ proper position sizing.
  • lightbulb-o
    You can always buy index funds if you prefer being a passive investor. Active investing requires skills. So study and practice first.

I bought a few shares of SM today at ₱939.50 and it's already up by 3.07%.

I hope that the market doesn't go up soon so that we can take advantage of the cheapness and accumulate more shares.

Some of the index stocks look overvalued so I omitted them but if the remaining stocks becomes attractive, then I'll probably pick up those I like and buy too.

Happy investing!

Disclaimer: I'll probably accumulate ALI, BPI, AEV and MBT as long as the market remains discounted in the coming months. I'm also interested in SMPH and AC if the market offers a lower price.

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