High-return SGX small- and mid-caps fetch higher valuations in 7M 2026

Median P/B rose from 0.55 times in the lowest-return group to 2.25 times in the highest. 

Higher-return SGX-listed small- and mid-cap firms traded at higher valuations in the first seven months of 2026, according to an SGX Group market update.

The analysis covered about 220 companies, including real estate investment trusts. Median price-to-book ratios ranged from 0.55 times in the lowest-return group to 2.25 times in the highest.

Return on equity and price-to-book ratios recorded a Spearman rank correlation of 0.62, indicating a positive relationship between profitability and valuation, the bourse said.

Across the broader group, median return on equity stood at 6.8%, whilst the median price-to-book ratio was 0.97 times.

SGX also identified 15 non-REIT companies that maintained returns on equity above 10% in June 2024, June 2025 and July 2026.

As of July, the group recorded a median return on equity of 29.8% and a median price-to-book ratio of 2.9 times.

Azeus Systems Holdings posted the highest return on equity at 64%, followed by PropNex at 59% and Soilbuild Construction Group at 57%. Their respective price-to-book ratios were 9.4 times, 11.8 times and 2.9 times.

SGX said valuations were also influenced by growth prospects, earnings visibility, liquidity and sector conditions.

For REITs, distributions, occupancy, rental growth, asset quality and financing costs were additional factors, it added.