Alliance Bank Malaysia Berhad

KLSE:ABMB Stock Report

Market Cap: RM 8.2b

Alliance Bank Malaysia Berhad Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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.

Discounted Cash Flow
Simply Wall St
RM 5.46
Fair Value
3.1% undervalued intrinsic discount
14
Number of Analysts

Below Fair Value: ABMB (MYR5.29) is trading below our estimate of fair value (MYR5.46)

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 Ratio11.4x
EarningsRM 721.17m
Market CapRM 8.19b

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 Average10.5x
AFFIN AFFIN Bank Berhad
16.5x12.5%RM 6.8b
BIMB Bank Islam Malaysia Berhad
10.1x7.1%RM 5.6b
AMBANK AMMB Holdings Berhad
9.3x3.6%RM 18.9b
HLFG Hong Leong Financial Group Berhad
6.2x5.6%RM 20.6b
ABMB Alliance Bank Malaysia Berhad
11.4x6.5%RM 8.2b

Price-To-Earnings vs Peers: ABMB is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
ABMB 11.4xIndustry Avg. 9.0xNo. of Companies73PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABMB is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the Asian Banks industry average (9x).

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 Ratio11.4x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: ABMB is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).

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 5.29
RM 5.03
-4.9%
6.4%RM 5.50RM 4.40n/a14
Feb ’26RM 5.20
RM 5.03
-3.3%
6.4%RM 5.50RM 4.40n/a14
Jan ’26RM 4.84
RM 5.03
+3.9%
6.4%RM 5.50RM 4.40n/a14
Dec ’25RM 4.91
RM 5.03
+2.5%
6.6%RM 5.50RM 4.40n/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 3.60RM 5.2013
Jan ’25RM 3.39
RM 3.91
+15.3%
4.7%RM 4.30RM 3.60RM 4.8413
Dec ’24RM 3.47
RM 3.86
+11.4%
6.8%RM 4.30RM 3.20RM 4.9113
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
Analyst Price Target
Consensus Narrative from 14 Analysts
RM 5.03
Fair Value
5.2% overvalued intrinsic discount
14
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 13:06
End of Day Share Price 2025/02/07 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Alliance Bank Malaysia Berhad is covered by 21 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ei TanAffin Hwang Investment Bank
Poh OngAmInvestment Bank Berhad
Gia NgCGS International