Golden MV Holdings Inc., a Philippine cemetery chain turned real estate player, has reached an astonishing 100 times its book value, a valuation that has investors and analysts questioning the sustainability of its meteoric rise. The company’s stock surged to a record high last month, propelling it to the top of the Bloomberg World Real Estate Index with a price-to-book (PB) ratio that dwarfs its peers, which typically hover around a PB ratio of 1.
With its stock price increasing more than 130% over the past year, Golden MV has significantly boosted the wealth of chairman and majority shareholder Manuel Villar Jr., solidifying his position as the richest person in the Philippines with a net worth of $24 billion, according to the Bloomberg Billionaires Index.
Founded in 2016 as Golden Haven, the company initially made waves by expanding from cemetery services into affordable housing. Its most ambitious project, however, is Villar City—an enormous 3,500-hectare estate in development that is projected to be ten times the size of New York’s Central Park. This planned development is larger than Manila’s Makati and Bonifacio Global City commercial districts combined, and it is now the centerpiece of the company’s future.
Golden MV’s market capitalization has soared to over $26 billion, surpassing that of SM Prime Holdings Inc., the Philippines’ previous largest property firm. In comparison, SM Prime trades at around 1.5 times its book value. Golden MV, however, has a PB ratio that is more than double that, raising questions about whether its valuation is truly justified by the company’s current profits.
The company attributes its rising stock value to investor interest in the Villar City project, with plans to rebrand as Villar Land Holdings Corp. to better reflect its focus on this development. Despite this optimism, some analysts remain cautious. Toby Allan Arce, an analyst at Globalinks Securities & Stocks Inc., noted that Golden MV’s valuation appears speculative, relying heavily on the projected future cash flows from Villar City and other developments, rather than current earnings. The company’s trailing 12-month earnings multiple is over 1,000 times, a figure that seems unjustified based on profits alone.
Golden MV has no official analyst ratings or earnings estimates, and its stock’s free float is less than 12% of its total shares outstanding, indicating that the stock is primarily held by insiders. As speculation builds around its ambitious real estate ventures, investors will be watching closely to see if Golden MV can live up to its lofty valuation.
