Investors in GDB Holdings Berhad (KLSE:GDB) have seen significant returns of 59% over the last year

GDB Holdings Berhad (KLSE:GDB) shareholders may be concerned about the 15% share price decline in the last quarter. While this may be a setback, it does not negate the good returns achieved over the last twelve months. Looking at the entire year, the company easily beat the index fund, gaining 59%.

So let’s assess the underlying fundamentals over the last year and see whether they have moved in line with shareholder returns.

View our latest analysis for GDB Holdings Berhad

In his essay Graham-and-Doddsville Super Investors Warren Buffett described how stock prices do not always rationally reflect the value of a company. By comparing earnings per share (EPS) and share price changes over time, we can get a sense of how investor attitudes towards a company have changed over time.

Over the last year, GDB Holdings Berhad has grown its earnings per share (EPS) by 53%. We note that the increase in earnings per share does not differ from the increase in the share price (by 59%). This suggests that market sentiment around the company has not changed significantly over this time. The share price appears to be reacting to EPS.

The company’s earnings per share (over time) are presented in the image below (click to see the exact numbers).

Before buying or selling a stock, we always recommend carefully reviewing historical growth trends, available here.

Another perspective

We’re pleased to report that GDB Holdings Berhad shareholders have received a total shareholder return of 59% over one year. This return is better than the annualized TSR over five years, which is 7%. So it looks like the sentiment around the company has been positive lately. Given that share price momentum remains strong, it’s worth taking a closer look at the stock to avoid missing out. While it is worth considering the various effects that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example – GDB Holdings Berhad 3 warning signs (and 1 that is potentially serious) we think you should know about.

If you’d rather check out another company – one with potentially better financials – don’t miss out free a list of companies that have proven that they can increase profits.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.

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This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.