DBS (D05) at ??: Safe haven or "priced for perfection"?
Everyone is cheering DBS hitting new 52-week highs on the back of record wealth management fees and that 17% ROE. But if you look under the hood of the FY2025 results, there's a growing tension the market is ignoring. My reverse P/B analysis shows the market is now pricing in a sustained ROE that DBS has historically struggled to maintain when interest rates ease. While the dividend yield looks juicy, my DCF suggests the "fair value" might actually be closer to $??—implying we are trading at a premium with very little margin for error. Is the capital return plan enough to offset a potential NIM compression in 2026?
Read the full "Reverse P/B" breakdown here: www.stockbutts.com/d05-dbs-may-2026/
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