Alliance Bank Malaysia Berhad

KLSE:ABMB Stock Report

Market Cap: RM5.7b

Alliance Bank Malaysia Berhad Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 (MYR3.68) is trading below our estimate of fair value (MYR4.32)

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?

Other financial metrics that can be useful for relative valuation.

ABMB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.2x

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 Average9.8x
BIMB Bank Islam Malaysia Berhad
10.5x7.1%RM5.8b
AFFIN AFFIN Bank Berhad
14.4x13.5%RM5.8b
AMBANK AMMB Holdings Berhad
7.7x1.0%RM13.8b
HLFG Hong Leong Financial Group Berhad
6.5x4.0%RM18.6b
ABMB Alliance Bank Malaysia Berhad
8.9x7.5%RM5.7b

Price-To-Earnings vs Peers: ABMB is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (9.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ABMB is good value based on its Price-To-Earnings Ratio (8.9x) compared to the Asian Banks industry average (9.3x).


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 Ratio8.9x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: ABMB is good value based on its Price-To-Earnings Ratio (8.9x) 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
CurrentRM3.68
RM3.96
+7.5%
4.4%RM4.30RM3.70n/a12
Mar ’25RM3.59
RM3.96
+10.2%
4.4%RM4.30RM3.70n/a12
Feb ’25RM3.43
RM3.91
+13.9%
4.7%RM4.30RM3.60n/a13
Jan ’25RM3.39
RM3.91
+15.3%
4.7%RM4.30RM3.60n/a13
Dec ’24RM3.47
RM3.86
+11.4%
6.8%RM4.30RM3.20n/a13
Nov ’24RM3.40
RM3.82
+12.3%
7.2%RM4.30RM3.20n/a13
Oct ’24RM3.38
RM3.80
+12.4%
6.5%RM4.10RM3.20n/a13
Sep ’24RM3.43
RM3.84
+11.9%
7.1%RM4.30RM3.20n/a14
Aug ’24RM3.49
RM3.94
+13.0%
6.8%RM4.40RM3.35n/a14
Jul ’24RM3.33
RM3.94
+18.4%
6.8%RM4.40RM3.35n/a14
Jun ’24RM3.38
RM3.95
+16.8%
7.1%RM4.40RM3.35n/a14
May ’24RM3.33
RM4.11
+23.3%
7.6%RM4.66RM3.50n/a14
Apr ’24RM3.40
RM4.12
+21.3%
6.7%RM4.66RM3.60n/a14
Mar ’24RM3.49
RM4.14
+18.6%
6.7%RM4.66RM3.60RM3.5914
Feb ’24RM3.59
RM4.19
+16.8%
6.3%RM4.66RM3.60RM3.4314
Jan ’24RM3.67
RM4.19
+14.2%
6.3%RM4.66RM3.60RM3.3914
Dec ’23RM3.80
RM4.19
+10.2%
6.4%RM4.66RM3.60RM3.4714
Nov ’23RM3.68
RM4.15
+12.8%
9.1%RM4.66RM3.45RM3.4014
Oct ’23RM3.53
RM4.15
+17.5%
9.1%RM4.66RM3.45RM3.3814
Sep ’23RM3.57
RM4.15
+16.2%
9.1%RM4.66RM3.45RM3.4314
Aug ’23RM3.45
RM4.00
+16.0%
9.0%RM4.66RM3.45RM3.4914
Jul ’23RM3.16
RM4.04
+27.9%
8.3%RM4.66RM3.45RM3.3314
Jun ’23RM3.55
RM4.01
+13.0%
7.6%RM4.66RM3.45RM3.3814
May ’23RM3.78
RM3.92
+3.7%
9.2%RM4.50RM3.17RM3.3314
Apr ’23RM3.75
RM3.92
+4.5%
9.2%RM4.50RM3.17RM3.4014
Mar ’23RM3.60
RM3.86
+7.3%
11.5%RM4.50RM2.90RM3.4914

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


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