Higher ROE Continued to Attract Higher Valuations The positive relationship between profitability and valuation remained evident across the SGX small and mid-cap (SMID) universe. Across approximately 220 SGX SMIDs, including S-REITs, median price-to-book (P/B) multiples increased from 0.55x in the lowest return on equity (ROE) quartile to 2.25x in the highest ROE quartile. ROE and P/B recorded a Spearman rank correlation of 0.62. A Spearman rank correlation measures how closely two variables move together when ranked, with a reading of 1.0 indicating a perfect positive relationship. The 0.62 reading indicates a relatively strong positive association, with companies generating higher returns on shareholder capital generally also ranking among those trading at higher valuation multiple