AMMB Holdings Berhad

KLSE:AMBANK Stock Report

Market Cap: RM 17.4b

AMMB Holdings Berhad Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 AMBANK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMBANK (MYR5.25) is trading below our estimate of fair value (MYR6.2)

Significantly Below Fair Value: AMBANK 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 AMBANK?

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

The above table shows the Price to Earnings ratio for AMBANK. This is calculated by dividing AMBANK's market cap by their current earnings.
What is AMBANK's PE Ratio?
PE Ratio8.7x
EarningsRM 1.99b
Market CapRM 17.38b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AMBANK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.1x
HLFG Hong Leong Financial Group Berhad
6.5x6.5%RM 20.9b
RHBBANK RHB Bank Berhad
10.5x8.2%RM 28.3b
ABMB Alliance Bank Malaysia Berhad
10.8x6.2%RM 7.7b
AFFIN AFFIN Bank Berhad
16.8x12.5%RM 6.9b
AMBANK AMMB Holdings Berhad
8.7x2.6%RM 17.4b

Price-To-Earnings vs Peers: AMBANK is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AMBANK 8.7xIndustry Avg. 8.5xNo. of Companies80PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMBANK is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is AMBANK'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.

AMBANK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: AMBANK is good value based on its Price-To-Earnings Ratio (8.7x) 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 AMBANK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 5.25
RM 5.56
+5.8%
8.2%RM 6.15RM 4.50n/a15
Nov ’25RM 5.06
RM 5.56
+9.8%
8.2%RM 6.15RM 4.50n/a15
Oct ’25RM 5.02
RM 5.53
+10.2%
7.8%RM 5.95RM 4.50n/a15
Sep ’25RM 5.20
RM 5.49
+5.5%
7.7%RM 5.95RM 4.50n/a15
Aug ’25RM 4.58
RM 4.84
+5.8%
6.4%RM 5.50RM 4.28n/a15
Jul ’25RM 4.28
RM 4.84
+13.2%
6.4%RM 5.50RM 4.28n/a15
Jun ’25RM 4.25
RM 4.74
+11.5%
4.3%RM 5.06RM 4.28n/a15
May ’25RM 4.20
RM 4.61
+9.7%
5.5%RM 5.05RM 4.20n/a15
Apr ’25RM 4.21
RM 4.61
+9.5%
5.5%RM 5.05RM 4.20n/a15
Mar ’25RM 4.28
RM 4.52
+5.6%
7.3%RM 5.05RM 3.75n/a15
Feb ’25RM 4.24
RM 4.45
+4.9%
7.1%RM 4.86RM 3.75n/a15
Jan ’25RM 4.01
RM 4.45
+10.9%
7.1%RM 4.86RM 3.75n/a15
Dec ’24RM 4.06
RM 4.43
+9.2%
6.9%RM 4.86RM 3.75n/a15
Nov ’24RM 3.82
RM 4.21
+10.3%
7.0%RM 4.80RM 3.75RM 5.0615
Oct ’24RM 3.70
RM 4.16
+12.3%
8.7%RM 4.80RM 3.30RM 5.0216
Sep ’24RM 3.73
RM 4.18
+12.2%
7.8%RM 4.70RM 3.30RM 5.2016
Aug ’24RM 3.83
RM 4.25
+11.0%
9.7%RM 5.05RM 3.30RM 4.5816
Jul ’24RM 3.62
RM 4.25
+17.4%
9.7%RM 5.05RM 3.30RM 4.2816
Jun ’24RM 3.64
RM 4.35
+19.4%
10.4%RM 5.24RM 3.30RM 4.2516
May ’24RM 3.61
RM 4.49
+24.3%
10.3%RM 5.24RM 3.30RM 4.2016
Apr ’24RM 3.75
RM 4.57
+21.7%
7.8%RM 5.24RM 4.00RM 4.2115
Mar ’24RM 3.92
RM 4.56
+16.4%
8.2%RM 5.24RM 4.00RM 4.2815
Feb ’24RM 4.08
RM 4.49
+10.0%
8.3%RM 5.12RM 3.80RM 4.2415
Jan ’24RM 4.14
RM 4.49
+8.4%
8.3%RM 5.12RM 3.80RM 4.0115
Dec ’23RM 4.20
RM 4.43
+5.5%
8.3%RM 4.95RM 3.75RM 4.0615
Nov ’23RM 4.02
RM 4.28
+6.5%
9.3%RM 4.95RM 3.70RM 3.8215

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

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