The Edge Singapore’s in-house analyst has an intrinsic value of 69 cents for Justco.
UBS uses an enterprise value to cash EBITDA multiple valuation method in valuing businesses similar to JustCo, and is pegged at 9x 2027 EV/cash EBITDA.
“We use JustCo’s 2027 cash EBITDA of US$32 million estimate and adopt an EV to cash EBITDA framework rather than the conventional Singapore real estate metrics such as price-to-earnings, price-to-book, or dividend yield. This distinction is because JustCo has a different capital structure. The company operates without external debt and generates a high rate of internal cashflows,” UBS explains.
According to UBS, JustCo plans to open 28 centres in 2026, and Japan is a high-margin market to monitor, as slower expansion could weigh on cash EBITDA. “The market capitalisation and free float are also small, which heightens liquidity risk. We are constructive, and view the extent of the selloff as difficult to reconcile with valuations at 1.8x EV/cash-EBITDA and 0.4x price-to-cash-EBITDA growth, which is attractive versus peers. The listed workspace peer set is relatively narrow, leaving a wide 4-13x EV/cash-EBITDA trading range and limiting the value of a single point multiple. Our price target is based on 9x multiple, the midpoint of the range,” the UBS report says.
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CBRE data points out that flexible office penetration rates in APAC stood at 5.4% as of 1H2025, well below the 10.6% rate seen in more developed markets like Central London. “Against this backdrop, JustCo’s APAC expansion plan underpins our expectation of a +43.5% CAGR in underlying cash EBITDA over 2025-2028,” UBS adds.
The STI closed at 5,191 on June 26, down a point week-on-week. In the short term, the index could pause and consolidate. Overall though, the uptrend remains intact, and the STI is likely to continue to move progressively higher. Its 50- and 100-day moving averages had drawn together, and are currently drawing apart as they rise suggesting a calibrated uptrend. The upside remains at 5,740. Altough the breakout is viewed as being at around 5,000 for this particular swing, the rising 50-day moving average, currently at 5,029 is likely to act as a better support line.
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In the US, the yield on 10-year Treasuries has eased to 4.38% from as high as 4.66% before Kevin Warsh’s first Federal Open Market Committee meeting on June 16-17. Perversely, the bond market may have taken comfort from the FOMC’s hawkish stance.
