Muhibbah Engineering (M) Bhd Valuation

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

MUHIBAH (MYR0.83) is trading below our estimate of [[fair value]] (MYR1.69)

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

Below Fair Value: MUHIBAH (MYR0.83) is trading below our estimate of fair value (MYR1.69)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MUHIBAH. This is calculated by dividing MUHIBAH's market cap by their current earnings.
What is MUHIBAH's PE Ratio?
PE Ratio	28.4x
Earnings	RM 21.24m
Market Cap	RM 604.21m

MUHIBAH 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	14.1x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MUHIBAH 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	26.3x
KAB Kinergy Advancement Berhad	36.6x	n/a	RM 655.5m
EDGENTA UEM Edgenta Berhad	17.3x	12.2%	RM 519.8m
HSSEB HSS Engineers Berhad	27.6x	46.9%	RM 559.3m
KKB KKB Engineering Berhad	23.8x	23.8%	RM 456.2m
MUHIBAH Muhibbah Engineering (M) Bhd	28.4x	31.8%	RM 604.2m

Price-To-Earnings vs Peers: MUHIBAH is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the peer average (26.3x).

Price to Earnings Ratio vs Industry

How does MUHIBAH'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: MUHIBAH is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the MY Construction industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is MUHIBAH'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.

MUHIBAH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	28.4x
Fair PE Ratio	22.6x

Price-To-Earnings vs Fair Ratio: MUHIBAH is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

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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