Alliance Bank Malaysia Berhad's(KLSE:ABMB) Share Price Is Down 34% Over The Past Three Years.

While it may not be enough for some shareholders, we think it is good to see the Alliance Bank Malaysia Berhad (KLSE:ABMB) share price up 12% in a single quarter. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 34% in the last three years, falling well short of the market return.

Check out our latest analysis for Alliance Bank Malaysia Berhad

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Alliance Bank Malaysia Berhad saw its EPS decline at a compound rate of 4.9% per year, over the last three years. The share price decline of 13% is actually steeper than the EPS slippage. So it seems the market was too confident about the business, in the past. The less favorable sentiment is reflected in its current P/E ratio of 9.49.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Alliance Bank Malaysia Berhad's key metrics by checking this interactive graph of Alliance Bank Malaysia Berhad's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Alliance Bank Malaysia Berhad's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Alliance Bank Malaysia Berhad shareholders, and that cash payout explains why its total shareholder loss of 28%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

It's nice to see that Alliance Bank Malaysia Berhad shareholders have gained 13% (in total) over the last year. That certainly beats the loss of about 9% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. Before deciding if you like the current share price, check how Alliance Bank Malaysia Berhad scores on these 3 valuation metrics.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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