Alliance Bank Malaysia Berhad

KLSE:ABMB Stock Report

Market Cap: RM 7.7b

Alliance Bank Malaysia Berhad Valuation

Is ABMB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ABMB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABMB (MYR4.97) is trading below our estimate of fair value (MYR5.57)

Significantly Below Fair Value: ABMB is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABMB?

Key metric: As ABMB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ABMB. This is calculated by dividing ABMB's market cap by their current earnings.
What is ABMB's PE Ratio?
PE Ratio10.7x
EarningsRM 716.59m
Market CapRM 7.69b

Price to Earnings Ratio vs Peers

How does ABMB's PE Ratio compare to its peers?

The above table shows the PE ratio for ABMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.2x
AFFIN AFFIN Bank Berhad
18.6x14.0%RM 6.8b
BIMB Bank Islam Malaysia Berhad
11.1x6.8%RM 6.3b
AMBANK AMMB Holdings Berhad
8.7x2.6%RM 17.4b
HLFG Hong Leong Financial Group Berhad
6.5x6.5%RM 20.7b
ABMB Alliance Bank Malaysia Berhad
10.7x6.2%RM 7.7b

Price-To-Earnings vs Peers: ABMB is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (11.2x).

Price to Earnings Ratio vs Industry

How does ABMB's PE Ratio compare vs other companies in the Asian Banks Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABMB 10.7xIndustry Avg. 8.5xNo. of Companies79PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABMB is expensive based on its Price-To-Earnings Ratio (10.7x) compared to the Asian Banks industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is ABMB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.7x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: ABMB is expensive based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ABMB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 4.97
RM 4.99
+0.4%
6.0%RM 5.50RM 4.38n/a13
Nov ’25RM 4.48
RM 4.81
+7.3%
5.0%RM 5.10RM 4.38n/a13
Oct ’25RM 4.40
RM 4.79
+8.8%
6.0%RM 5.10RM 4.10n/a13
Sep ’25RM 4.31
RM 4.69
+8.7%
8.2%RM 5.10RM 3.85n/a13
Aug ’25RM 4.15
RM 4.23
+2.0%
3.6%RM 4.45RM 3.85n/a13
Jul ’25RM 3.75
RM 4.23
+12.9%
3.6%RM 4.45RM 3.85n/a13
Jun ’25RM 3.87
RM 4.23
+9.4%
3.6%RM 4.45RM 3.85n/a13
May ’25RM 3.82
RM 3.99
+4.3%
4.6%RM 4.30RM 3.70n/a13
Apr ’25RM 3.68
RM 3.97
+8.0%
4.5%RM 4.30RM 3.70n/a13
Mar ’25RM 3.59
RM 3.98
+10.9%
4.8%RM 4.30RM 3.70n/a13
Feb ’25RM 3.43
RM 3.91
+13.9%
4.7%RM 4.30RM 3.60n/a13
Jan ’25RM 3.39
RM 3.91
+15.3%
4.7%RM 4.30RM 3.60n/a13
Dec ’24RM 3.47
RM 3.86
+11.4%
6.8%RM 4.30RM 3.20n/a13
Nov ’24RM 3.40
RM 3.82
+12.3%
7.2%RM 4.30RM 3.20RM 4.4813
Oct ’24RM 3.38
RM 3.80
+12.4%
6.5%RM 4.10RM 3.20RM 4.4013
Sep ’24RM 3.43
RM 3.84
+11.9%
7.1%RM 4.30RM 3.20RM 4.3114
Aug ’24RM 3.49
RM 3.94
+13.0%
6.8%RM 4.40RM 3.35RM 4.1514
Jul ’24RM 3.33
RM 3.94
+18.4%
6.8%RM 4.40RM 3.35RM 3.7514
Jun ’24RM 3.38
RM 3.95
+16.8%
7.1%RM 4.40RM 3.35RM 3.8714
May ’24RM 3.33
RM 4.11
+23.3%
7.6%RM 4.66RM 3.50RM 3.8214
Apr ’24RM 3.40
RM 4.12
+21.3%
6.7%RM 4.66RM 3.60RM 3.6814
Mar ’24RM 3.49
RM 4.14
+18.6%
6.7%RM 4.66RM 3.60RM 3.5914
Feb ’24RM 3.59
RM 4.19
+16.8%
6.3%RM 4.66RM 3.60RM 3.4314
Jan ’24RM 3.67
RM 4.19
+14.2%
6.3%RM 4.66RM 3.60RM 3.3914
Dec ’23RM 3.80
RM 4.19
+10.2%
6.4%RM 4.66RM 3.60RM 3.4714
Nov ’23RM 3.68
RM 4.15
+12.8%
9.1%RM 4.66RM 3.45RM 3.4014

Analyst Forecast: Target price is less than 20% higher than the current share price.

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