Boustead Heavy Industries Corporation Berhad Valuation

Is BHIC 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: BHIC (MYR0.43) is trading below our estimate of fair value (MYR10.36)

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

Key Valuation Metric

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

Key metric: As BHIC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BHIC. This is calculated by dividing BHIC's market cap by their current revenue.
What is BHIC's PS Ratio?
PS Ratio	1.2x
Sales	RM 207.37m
Market Cap	RM 248.28m

BHIC 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/Revenue	1.8x
Enterprise Value/EBITDA	-1.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does BHIC's PS Ratio compare to its peers?

The above table shows the PS ratio for BHIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.3x
FAVCO Favelle Favco Berhad	0.5x	n/a	RM 411.6m
TAS TAS Offshore Berhad	1x	n/a	RM 114.5m
SEALINK Sealink International Berhad	1.2x	n/a	RM 160.0m
COASTAL Coastal Contracts Bhd	10.6x	14.4%	RM 802.6m
BHIC Boustead Heavy Industries Corporation Berhad	1.2x	n/a	RM 248.3m

Price-To-Sales vs Peers: BHIC is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (3.3x).

Price to Sales Ratio vs Industry

How does BHIC's PS Ratio compare vs other companies in the MY Machinery Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
FITTERS FITTERS Diversified Berhad	0.3x	n/a	US$18.44m
SEB Seremban Engineering Berhad	0.2x	n/a	US$10.76m
FAST Fast Energy Holdings Berhad	0.06x	n/a	US$5.81m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: BHIC is good value based on its Price-To-Sales Ratio (1.2x) compared to the MY Machinery industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

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

BHIC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate BHIC's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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