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Brief Commentary On UBM Development AG’s (VIE:UBS) Fundamentals

Attractive stocks have exceptional fundamentals. In the case of UBM Development AG (WBAG:UBS), there’s is a financially-healthy company with a a great track record high-grade dividend payments, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on UBM Development here.

6 star dividend payer and undervalued

UBS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that UBS manages its cash and cost levels well, which is an important determinant of the company’s health. UBS’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps UBS expand. UBS’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if UBS’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the real estate industry, UBS is also trading below its peers, relative to earnings generated. This bolsters the proposition that UBS’s price is currently discounted.

WBAG:UBS Intrinsic Value Jun 15th 18
WBAG:UBS Intrinsic Value Jun 15th 18

Income investors would also be happy to know that UBS is one of the highest dividend payers in the market, with current dividend yield standing at 4.82%. UBS has also been regularly increasing its dividend payments to shareholders over the past decade.

WBAG:UBS Historical Dividend Yield Jun 15th 18
WBAG:UBS Historical Dividend Yield Jun 15th 18

Next Steps:

For UBM Development, I’ve put together three pertinent factors you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for UBS’s future growth? Take a look at our free research report of analyst consensus for UBS’s outlook.

  2. Historical Performance: What has UBS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UBS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.