Hong Leong Bank Berhad

KLSE:HLBANK Stock Report

Market Cap: RM 41.0b

Hong Leong Bank Berhad Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: HLBANK (MYR20) is trading below our estimate of fair value (MYR27.26)

Significantly Below Fair Value: HLBANK is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HLBANK. This is calculated by dividing HLBANK's market cap by their current earnings.
What is HLBANK's PE Ratio?
PE Ratio9.6x
EarningsRM 4.26b
Market CapRM 41.00b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HLBANK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.8x
RHBBANK RHB Bank Berhad
9.6x6.7%RM 27.5b
HLFG Hong Leong Financial Group Berhad
6.1x5.6%RM 20.3b
PBBANK Public Bank Berhad
12.4x4.8%RM 86.6b
CIMB CIMB Group Holdings Berhad
11.2x6.1%RM 85.2b
HLBANK Hong Leong Bank Berhad
9.6x7.4%RM 41.0b

Price-To-Earnings vs Peers: HLBANK is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HLBANK 9.6xIndustry Avg. 8.7xNo. of Companies83PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HLBANK is expensive based on its Price-To-Earnings Ratio (9.6x) compared to the Asian Banks industry average (8.7x).

Price to Earnings Ratio vs Fair Ratio

What is HLBANK'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.

HLBANK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: HLBANK is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).

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 HLBANK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 20.00
RM 25.24
+26.2%
8.3%RM 31.40RM 22.76n/a15
Dec ’25RM 20.68
RM 25.15
+21.6%
8.8%RM 31.40RM 22.55n/a15
Nov ’25RM 20.20
RM 24.83
+22.9%
8.2%RM 30.00RM 21.70n/a15
Oct ’25RM 21.38
RM 24.69
+15.5%
8.7%RM 30.00RM 21.70n/a15
Sep ’25RM 21.22
RM 24.35
+14.7%
8.8%RM 30.00RM 21.38n/a15
Aug ’25RM 19.38
RM 23.16
+19.5%
8.9%RM 27.00RM 18.00n/a15
Jul ’25RM 19.36
RM 23.16
+19.6%
8.9%RM 27.00RM 18.00n/a15
Jun ’25RM 19.26
RM 23.26
+20.8%
8.7%RM 27.00RM 18.00n/a15
May ’25RM 19.30
RM 22.97
+19.0%
7.7%RM 26.30RM 18.00n/a15
Apr ’25RM 19.52
RM 22.84
+17.0%
7.7%RM 26.30RM 18.00n/a15
Mar ’25RM 19.60
RM 22.80
+16.4%
7.7%RM 26.30RM 18.00n/a15
Feb ’25RM 19.20
RM 22.64
+17.9%
7.7%RM 26.30RM 18.00n/a15
Jan ’25RM 18.90
RM 22.64
+19.8%
7.7%RM 26.30RM 18.00n/a15
Dec ’24RM 19.14
RM 22.40
+17.0%
8.1%RM 26.30RM 18.00RM 20.6815
Nov ’24RM 19.20
RM 22.45
+16.9%
7.2%RM 25.30RM 18.30RM 20.2015
Oct ’24RM 19.50
RM 22.52
+15.5%
7.2%RM 25.30RM 18.30RM 21.3815
Sep ’24RM 20.00
RM 22.71
+13.6%
7.4%RM 25.30RM 18.30RM 21.2216
Aug ’24RM 19.50
RM 22.82
+17.0%
8.3%RM 25.30RM 17.60RM 19.3816
Jul ’24RM 18.96
RM 22.82
+20.3%
8.3%RM 25.30RM 17.60RM 19.3616
Jun ’24RM 19.28
RM 22.82
+18.4%
8.3%RM 25.30RM 17.60RM 19.2616
May ’24RM 20.14
RM 23.28
+15.6%
8.1%RM 25.60RM 17.30RM 19.3016
Apr ’24RM 20.22
RM 23.34
+15.4%
8.1%RM 25.60RM 17.30RM 19.5216
Mar ’24RM 20.52
RM 23.51
+14.6%
8.2%RM 25.60RM 17.30RM 19.6016
Feb ’24RM 20.52
RM 23.34
+13.7%
8.9%RM 26.50RM 17.30RM 19.2016
Jan ’24RM 20.56
RM 23.34
+13.5%
8.9%RM 26.50RM 17.30RM 18.9016
Dec ’23RM 20.68
RM 23.33
+12.8%
8.9%RM 26.50RM 17.30RM 19.1416

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 00:33
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

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 here.

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 .

Analyst Sources

Hong Leong Bank Berhad is covered by 32 analysts. 15 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
Wee Siang NgBNP Paribas Securities (Asia)