st eng PE is at all time high
Defense stocks aren't best judged on trailing P/E alone. Key factors include:Order backlog & book-to-bill ratio — Visibility into multi-year revenue (ST Eng has a healthy one).
Growth profile — Especially in high-margin areas like electronics, cyber, and smart defence systems.
EV/EBIT or forward P/E — These better capture the business quality than trailing earnings, which can be lumpy.
Contract stability — Government-backed revenue often justifies a premium.
Many quality defence names trade at elevated multiples today due to geopolitical spending, but always cross-check with EV/EBITDA, free cash flow conversion, and peer comps (e.g., some pure-play defence peers sit lower, while growth-oriented ones command 30x+ forward). At current levels, ST Eng prices in a lot of optimism — fine if growth delivers, but leaves limited margin of safety.
DBS Flat: Will Defensive Rotate Out of SGX?
DBS Group closed nearly unchanged at SGD 57.26 as the U.S.-Iran ceasefire materially lifted global risk appetite, temporarily reducing the relative appeal of defensive assets — though DBS's robust dividend profile and growing regional wealth management franchise continue to underpin valuation support. The stock's defensive characteristics on SGX during periods of extreme geopolitical risk were once again validated. With the ceasefire rally in full swing, will capital accelerate its rotation away from SGX defensive names and back into U.S. growth equities?
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