Malaysian Resources Corporation Berhad

KLSE:MRCB Stock Report

Market Cap: RM 2.3b

Malaysian Resources Corporation Berhad Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: MRCB (MYR0.53) is trading above our estimate of fair value (MYR0.41)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MRCB. This is calculated by dividing MRCB's market cap by their current earnings.
What is MRCB's PE Ratio?
PE Ratio17.3x
EarningsRM 135.87m
Market CapRM 2.35b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MRCB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
KERJAYA Kerjaya Prospek Group Berhad
19.5x17.9%RM 2.7b
KGB Kelington Group Berhad
20.2x15.8%RM 2.5b
AME AME Elite Consortium Berhad
12.5x8.8%RM 1.1b
SUNCON Sunway Construction Group Berhad
35.2x26.6%RM 5.9b
MRCB Malaysian Resources Corporation Berhad
17.3x-18.9%RM 2.3b

Price-To-Earnings vs Peers: MRCB is good value based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does MRCB'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
MRCB 17.3xIndustry Avg. 18.5xNo. of Companies9PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MRCB is good value based on its Price-To-Earnings Ratio (17.3x) compared to the MY Construction industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is MRCB'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.

MRCB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.3x
Fair PE Ratio9.5x

Price-To-Earnings vs Fair Ratio: MRCB is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.5x).

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 MRCB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 0.53
RM 0.67
+26.7%
15.2%RM 0.86RM 0.52n/a6
Nov ’25RM 0.56
RM 0.67
+19.8%
15.2%RM 0.86RM 0.52n/a6
Oct ’25RM 0.60
RM 0.67
+10.8%
15.2%RM 0.86RM 0.52n/a6
Sep ’25RM 0.55
RM 0.64
+16.0%
16.3%RM 0.80RM 0.52n/a5
Aug ’25RM 0.60
RM 0.64
+5.5%
16.3%RM 0.80RM 0.52n/a5
Jul ’25RM 0.61
RM 0.64
+4.6%
16.3%RM 0.80RM 0.52n/a5
Jun ’25RM 0.66
RM 0.64
-2.6%
16.3%RM 0.80RM 0.52n/a5
May ’25RM 0.67
RM 0.62
-7.8%
25.3%RM 0.80RM 0.37n/a4
Apr ’25RM 0.66
RM 0.58
-12.1%
27.3%RM 0.80RM 0.37n/a5
Mar ’25RM 0.58
RM 0.56
-4.3%
23.9%RM 0.70RM 0.37n/a5
Feb ’25RM 0.65
RM 0.51
-22.2%
25.0%RM 0.74RM 0.40n/a5
Jan ’25RM 0.45
RM 0.46
+3.8%
12.3%RM 0.54RM 0.40n/a5
Dec ’24RM 0.41
RM 0.44
+6.4%
15.6%RM 0.54RM 0.34n/a6
Nov ’24RM 0.42
RM 0.45
+7.1%
17.0%RM 0.55RM 0.34RM 0.566
Oct ’24RM 0.46
RM 0.45
-2.2%
17.0%RM 0.55RM 0.34RM 0.606
Sep ’24RM 0.49
RM 0.45
-9.1%
17.0%RM 0.55RM 0.34RM 0.556
Aug ’24RM 0.37
RM 0.37
-0.8%
7.9%RM 0.42RM 0.34RM 0.607
Jul ’24RM 0.30
RM 0.37
+21.3%
7.4%RM 0.42RM 0.34RM 0.617
Jun ’24RM 0.30
RM 0.37
+20.4%
6.1%RM 0.40RM 0.34RM 0.667
May ’24RM 0.30
RM 0.38
+23.2%
9.4%RM 0.45RM 0.34RM 0.677
Apr ’24RM 0.34
RM 0.38
+8.9%
9.4%RM 0.45RM 0.34RM 0.667
Mar ’24RM 0.31
RM 0.38
+21.2%
9.4%RM 0.45RM 0.34RM 0.587
Feb ’24RM 0.33
RM 0.38
+15.2%
11.3%RM 0.45RM 0.34RM 0.657
Jan ’24RM 0.29
RM 0.38
+28.8%
11.3%RM 0.45RM 0.34RM 0.457
Dec ’23RM 0.33
RM 0.38
+15.2%
11.3%RM 0.45RM 0.34RM 0.417
Nov ’23RM 0.29
RM 0.39
+32.7%
10.3%RM 0.44RM 0.34RM 0.427

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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