Keppel's stock price fell 3.02% during intraday trading on Tuesday, as investors reacted to concerns about the company's valuation metrics despite positive business developments.

The decline comes after news that Keppel has fully committed all five fibre pairs in its Bifrost Cable System through an agreement with a global hyperscaler. However, valuation analysis shows Keppel trades at a P/E ratio of 19.7x, which is significantly above the estimated fair ratio of 15.8x and well ahead of the Asian Industrials average of 12x.

Market participants appear concerned that the stock's current valuation leaves "less room for error if expectations are not met," particularly given risks mentioned in recent analysis including potential delays or weaker pricing on the company's $14.4 billion non-core asset sales portfolio.