Dancomech Holdings Berhad

KLSE:DANCO Stock Report

Market Cap: RM 196.9m

Dancomech Holdings Berhad Valuation

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

Below Fair Value: DANCO (MYR0.45) is trading below our estimate of fair value (MYR0.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DANCO. This is calculated by dividing DANCO's market cap by their current earnings.
What is DANCO's PE Ratio?
PE Ratio8.9x
EarningsRM 22.19m
Market CapRM 196.93m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DANCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32x
PGLOBE Paragon Globe Berhad
41.4xn/aRM 220.3m
PLYTEC PLYTEC Holding Berhad
33.3xn/aRM 215.2m
TSA TSA Group Berhad
15.3xn/aRM 250.5m
AYS AYS Ventures Berhad
37.8xn/aRM 133.9m
DANCO Dancomech Holdings Berhad
8.9x3.6%RM 196.9m

Price-To-Earnings vs Peers: DANCO is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (32x).

Price to Earnings Ratio vs Industry

How does DANCO's PE Ratio compare vs other companies in the MY Trade Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
DANCO 8.9xIndustry Avg. 14.8xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DANCO is good value based on its Price-To-Earnings Ratio (8.9x) compared to the MY Trade Distributors industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is DANCO'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.

DANCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.9x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: DANCO is good value based on its Price-To-Earnings Ratio (8.9x) 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 DANCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 0.45
RM 0.55
+23.6%
3.6%RM 0.57RM 0.53n/a2
Nov ’25RM 0.43
RM 0.55
+26.4%
3.6%RM 0.57RM 0.53n/a2
Oct ’25RM 0.45
RM 0.57
+29.2%
0.9%RM 0.58RM 0.57n/a2
Sep ’25RM 0.46
RM 0.57
+25.0%
0.9%RM 0.58RM 0.57n/a2
Aug ’25RM 0.47
RM 0.55
+15.8%
5.5%RM 0.58RM 0.52n/a2
Jul ’25RM 0.48
RM 0.55
+13.4%
5.5%RM 0.58RM 0.52n/a2
Jun ’25RM 0.47
RM 0.55
+15.8%
5.5%RM 0.58RM 0.52n/a2
May ’25RM 0.45
RM 0.55
+23.6%
5.5%RM 0.58RM 0.52n/a2
Apr ’25RM 0.45
RM 0.55
+23.6%
5.5%RM 0.58RM 0.52n/a2
Mar ’25RM 0.46
RM 0.55
+20.9%
5.5%RM 0.58RM 0.52n/a2
Nov ’24RM 0.41
RM 0.53
+28.0%
10.5%RM 0.58RM 0.47RM 0.432
Oct ’24RM 0.41
RM 0.53
+26.5%
10.5%RM 0.58RM 0.47RM 0.452
Sep ’24RM 0.43
RM 0.53
+20.7%
10.5%RM 0.58RM 0.47RM 0.462
Aug ’24RM 0.43
RM 0.53
+22.1%
10.5%RM 0.58RM 0.47RM 0.472
Jul ’24RM 0.40
RM 0.53
+32.9%
10.5%RM 0.58RM 0.47RM 0.482
Jun ’24RM 0.41
RM 0.53
+29.6%
10.5%RM 0.58RM 0.47RM 0.472
May ’24RM 0.43
RM 0.53
+20.7%
10.5%RM 0.58RM 0.47RM 0.452
Apr ’24RM 0.45
RM 0.53
+18.0%
10.5%RM 0.58RM 0.47RM 0.452
Mar ’24RM 0.44
RM 0.53
+19.3%
10.5%RM 0.58RM 0.47RM 0.462
Feb ’24RM 0.42
RM 0.47
+10.6%
6.4%RM 0.50RM 0.44RM 0.442
Jan ’24RM 0.40
RM 0.47
+19.0%
6.4%RM 0.50RM 0.44RM 0.432
Dec ’23RM 0.40
RM 0.43
+10.1%
14.9%RM 0.50RM 0.37RM 0.432
Nov ’23RM 0.38
RM 0.41
+6.6%
8.6%RM 0.44RM 0.37RM 0.412

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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