HE Group Berhad Valuation

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

HEGROUP (MYR0.52) is trading above our estimate of [[fair value]] (MYR0.11)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: HEGROUP (MYR0.52) is trading above our estimate of fair value (MYR0.11)

Significantly Below Fair Value: HEGROUP is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HEGROUP. This is calculated by dividing HEGROUP's market cap by their current earnings.
What is HEGROUP's PE Ratio?
PE Ratio	17.4x
Earnings	RM 12.99m
Market Cap	RM 226.60m

HEGROUP 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	0.9x
Enterprise Value/EBITDA	10.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HEGROUP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.3x
INTA Inta Bina Group Berhad	9.2x	19.3%	RM 259.2m
FAJAR Fajarbaru Builder Group Bhd	4.4x	n/a	RM 263.3m
UUE UUE Holdings Berhad	28.3x	23.2%	RM 450.1m
MNHLDG MN Holdings Berhad	27.4x	30.5%	RM 463.1m
HEGROUP HE Group Berhad	17.4x	n/a	RM 226.6m

Price-To-Earnings vs Peers: HEGROUP is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

How does HEGROUP's PE Ratio compare vs other companies in the MY Construction Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
AZRB Ahmad Zaki Resources Berhad	1.2x	n/a	US$32.41m
ZELAN Zelan Berhad	1x	n/a	US$7.59m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HEGROUP is good value based on its Price-To-Earnings Ratio (17.4x) compared to the MY Construction industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is HEGROUP'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.

HEGROUP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HEGROUP's Price-To-Earnings 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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