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Is DBS Singapore’s indispensable stock?
Published Tue, Apr 9, 2024 · 04:32 PM
WHEN interest rates were low, many assets had lofty valuations.
Using a lower discount rate to value future earnings results in a higher stock valuation. Applying a lower capitalisation rate to projected income leads to a rise in a property’s value.
Moreover, fuelled by cheap debt, businesses could binge on acquisitions to boost profits. And investors could juice up levered returns on investment by borrowing more.
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