MGB Berhad

KLSE:MGB Stock Report

Market Cap: RM 455.6m

MGB Berhad Valuation

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

Below Fair Value: MGB (MYR0.77) is trading below our estimate of fair value (MYR7.32)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MGB. This is calculated by dividing MGB's market cap by their current earnings.
What is MGB's PE Ratio?
PE Ratio7.9x
EarningsRM 57.53m
Market CapRM 455.57m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MGB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.3x
KKB KKB Engineering Berhad
23.8x23.8%RM 456.2m
UUE UUE Holdings Berhad
28.7x23.2%RM 456.2m
MNHLDG MN Holdings Berhad
27.5x30.5%RM 465.5m
EDGENTA UEM Edgenta Berhad
17.2x12.2%RM 515.6m
MGB MGB Berhad
7.9x12.5%RM 455.6m

Price-To-Earnings vs Peers: MGB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

How does MGB'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$32.30m
ZELAN Zelan Berhad
1xn/aUS$7.56m
No more companies available in this PE range
MGB 7.9xIndustry Avg. 19.3xNo. of Companies9PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the MY Construction industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is MGB'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.

MGB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio14.1x

Price-To-Earnings vs Fair Ratio: MGB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

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 MGB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 0.77
RM 1.18
+53.2%
1.7%RM 1.20RM 1.16n/a2
Nov ’25RM 0.80
RM 1.18
+47.5%
1.7%RM 1.20RM 1.16n/a2
Oct ’25RM 0.80
RM 1.18
+47.5%
1.7%RM 1.20RM 1.16n/a2
Sep ’25RM 0.81
RM 1.18
+44.8%
1.7%RM 1.20RM 1.16n/a2
May ’25RM 0.81
RM 1.15
+41.4%
1.3%RM 1.16RM 1.13n/a2
Apr ’25RM 0.81
RM 1.05
+30.8%
12.4%RM 1.16RM 0.87n/a3
Mar ’25RM 0.82
RM 1.05
+27.7%
12.4%RM 1.16RM 0.87n/a3
Feb ’25RM 0.64
RM 1.05
+64.6%
12.4%RM 1.16RM 0.87n/a3
Jan ’25RM 0.67
RM 1.05
+57.2%
12.4%RM 1.16RM 0.87n/a3
Dec ’24RM 0.66
RM 1.05
+59.6%
12.4%RM 1.16RM 0.87n/a3
Nov ’24RM 0.68
RM 1.04
+54.1%
11.7%RM 1.15RM 0.87RM 0.803
Oct ’24RM 0.69
RM 1.04
+49.6%
11.7%RM 1.15RM 0.87RM 0.803
Sep ’24RM 0.73
RM 1.04
+42.5%
11.7%RM 1.15RM 0.87RM 0.813
Aug ’24RM 0.69
RM 0.97
+41.1%
13.6%RM 1.12RM 0.80RM 0.863
Jul ’24RM 0.69
RM 0.92
+33.3%
10.2%RM 1.03RM 0.80RM 0.793
Jun ’24RM 0.72
RM 0.86
+19.3%
7.5%RM 0.93RM 0.80RM 0.882
May ’24RM 0.73
RM 0.76
+2.7%
17.9%RM 0.89RM 0.62RM 0.812
Apr ’24RM 0.69
RM 0.76
+10.2%
17.9%RM 0.89RM 0.62RM 0.812
Mar ’24RM 0.57
RM 0.63
+9.6%
1.6%RM 0.64RM 0.62RM 0.822
Feb ’24RM 0.56
RM 0.60
+9.0%
5.8%RM 0.64RM 0.57RM 0.642
Jan ’24RM 0.52
RM 0.60
+16.3%
5.8%RM 0.64RM 0.57RM 0.672
Dec ’23RM 0.53
RM 0.60
+14.2%
5.8%RM 0.64RM 0.57RM 0.662
Nov ’23RM 0.50
RM 0.64
+28.0%
4.7%RM 0.67RM 0.61RM 0.682

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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