IJM Corporation Berhad

KLSE:IJM Stock Report

Market Cap: RM 10.7b

IJM Corporation Berhad Valuation

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

Below Fair Value: IJM (MYR3.05) is trading above our estimate of fair value (MYR2.59)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IJM. This is calculated by dividing IJM's market cap by their current earnings.
What is IJM's PE Ratio?
PE Ratio18.2x
EarningsRM 586.52m
Market CapRM 10.69b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IJM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.1x
SUNCON Sunway Construction Group Berhad
35.2x26.6%RM 5.9b
KERJAYA Kerjaya Prospek Group Berhad
19.5x17.9%RM 2.7b
MRCB Malaysian Resources Corporation Berhad
17.3x-18.9%RM 2.3b
GAMUDA Gamuda Berhad
28.4x16.5%RM 25.9b
IJM IJM Corporation Berhad
18.2x5.4%RM 10.7b

Price-To-Earnings vs Peers: IJM is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (25.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AZRB Ahmad Zaki Resources Berhad
1.2xn/aUS$32.31m
ZELAN Zelan Berhad
1xn/aUS$7.56m
No more companies available in this PE range
IJM 18.2xIndustry Avg. 19.1xNo. of Companies9PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IJM is good value based on its Price-To-Earnings Ratio (18.2x) compared to the MY Construction industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is IJM'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.

IJM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.2x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: IJM is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

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 IJM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 3.05
RM 3.71
+21.5%
10.7%RM 4.40RM 3.10n/a15
Nov ’25RM 3.02
RM 3.61
+19.4%
15.7%RM 4.40RM 2.10n/a15
Oct ’25RM 2.99
RM 3.63
+21.5%
15.8%RM 4.40RM 2.10n/a14
Sep ’25RM 2.87
RM 3.51
+22.2%
20.5%RM 4.40RM 2.00n/a14
Aug ’25RM 3.49
RM 3.26
-6.6%
25.6%RM 4.40RM 1.90n/a13
Jul ’25RM 3.04
RM 3.03
-0.3%
21.4%RM 3.89RM 1.90n/a13
Jun ’25RM 2.75
RM 2.64
-4.1%
16.4%RM 3.16RM 1.90n/a14
May ’25RM 2.42
RM 2.34
-3.2%
13.1%RM 2.88RM 1.90n/a14
Apr ’25RM 2.37
RM 2.34
-1.4%
12.8%RM 2.88RM 1.90n/a15
Mar ’25RM 2.15
RM 2.31
+7.3%
12.8%RM 2.88RM 1.90n/a15
Feb ’25RM 2.24
RM 2.21
-1.2%
11.2%RM 2.88RM 1.90n/a15
Jan ’25RM 1.88
RM 2.09
+11.1%
8.6%RM 2.46RM 1.70n/a15
Dec ’24RM 1.88
RM 2.04
+8.5%
9.2%RM 2.46RM 1.70n/a16
Nov ’24RM 1.87
RM 1.97
+5.4%
7.4%RM 2.18RM 1.62RM 3.0216
Oct ’24RM 1.86
RM 1.90
+2.4%
12.0%RM 2.18RM 1.25RM 2.9916
Sep ’24RM 1.85
RM 1.89
+2.2%
11.7%RM 2.18RM 1.25RM 2.8717
Aug ’24RM 1.51
RM 1.84
+21.8%
13.2%RM 2.18RM 1.25RM 3.4917
Jul ’24RM 1.49
RM 1.82
+22.3%
13.5%RM 2.18RM 1.25RM 3.0418
Jun ’24RM 1.64
RM 1.81
+10.3%
13.7%RM 2.18RM 1.25RM 2.7518
May ’24RM 1.56
RM 1.80
+15.2%
13.1%RM 2.15RM 1.25RM 2.4218
Apr ’24RM 1.60
RM 1.80
+12.3%
13.1%RM 2.15RM 1.25RM 2.3718
Mar ’24RM 1.64
RM 1.80
+9.9%
12.9%RM 2.15RM 1.25RM 2.1518
Feb ’24RM 1.56
RM 1.83
+17.5%
14.8%RM 2.39RM 1.25RM 2.2418
Jan ’24RM 1.60
RM 1.83
+14.5%
14.8%RM 2.39RM 1.25RM 1.8818
Dec ’23RM 1.65
RM 1.83
+11.1%
14.8%RM 2.39RM 1.25RM 1.8818
Nov ’23RM 1.59
RM 1.86
+17.2%
14.5%RM 2.39RM 1.25RM 1.8718

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

Discover undervalued companies

Kimlun Corporation Berhad

RM 477.0m

An investment holding company, provides engineering and construction services in Malaysia and Singapore.

KIMLUN

RM 1.35

7D

0%

1Y

72.0%

Southern Cable Group Berhad

RM 854.0m

Manufactures and sells cables and wires in Malaysia and internationally.

SCGBHD

RM 0.97

7D

2.1%

1Y

165.8%

Ekovest Berhad

RM 1.0b

An investment holding company, engages in civil engineering and building works in Malaysia, the United States, Japan, and the People’s Republic of China.

EKOVEST

RM 0.35

7D

-2.8%

1Y

-24.7%