I think Cherroy reason on earnings ability of the company is valid. The company earnings ability is more important than its underlying assets. In addition, the computation done is through the use of Market Value and the bulk of the value come from Genting Singapore. This is computation is base on the underlying assumption that the market have price Genting subsidiaries and associates correctly, which is not always the case. Genting Singapore market cap is bigger than Genting group itself. For a company that do not earn much yet, it is a very high valuation. If Resort World@Sentosa did not turn out as good as expected i.e. loss-making business, it can just drop to closer to its net asset value which is about $0.27. That will wipe off all the Genting value if you compute it base on market value.

Market value is appropriate only when the company is price correctly by the market. The current valuation of Genting Singapore assume the Sentosa resort will be a huge success.

Another thing about using underlying asset to compute is that if the management did not unlock the value of its asset, it is useless to the shareholders as it is not put into good use. There are companies that have huge asset value, stocks like Keck Seng, if the company revalue all their properties and land, can be as high as RM10-RM15 depending on your valuation. But yet, the company is trading at Rm3.89. This is because the company is not unlocking its asset value.

Disclosure: I own Genting and I do hope that the valuation of GENS is correct