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However, a similar 3-room flat in a mature estate also with a value of $375,000, but a YP of 10, its net rental income will be 375,000/10 = $37,000, based on a = V/YP.
The next question is how do perfect ten condo price you obtain the YP. As YP is the revenue ratio of the property, it is similar to the Price / Earning Ratio (PE Ratio) of a stock. If you have a PE Ratio = 20, it means you have to wait 20 years to recoup the price you paid for the stock. A market analyst will say the stock is undervalued.
A stock with a PE Ratio of 1 or less is considered a poor performer and nobody will buy it as reselling it is going to be an uphill task. On the other hand, a PE Ratio between 60 and 150 is a high performing stock with strong potential.