Seremban Engineering Berhad

KLSE:SEB Stock Report

Market Cap: RM 47.0m

Seremban Engineering Berhad Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: SEB (MYR0.59) is trading below our estimate of fair value (MYR0.76)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SEB. This is calculated by dividing SEB's market cap by their current earnings.
What is SEB's PE Ratio?
PE Ratio15.3x
EarningsRM 3.07m
Market CapRM 47.01m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SEB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.5x
POLYDM Polydamic Group Berhad
9.6xn/aRM 66.2m
CEKD CEKD Berhad
13.2xn/aRM 90.5m
JASKITA Jasa Kita Berhad
1.8xn/aRM 69.7m
HIGHTEC Kumpulan H & L High-Tech Berhad
13.3xn/aRM 92.3m
SEB Seremban Engineering Berhad
15.3xn/aRM 47.0m

Price-To-Earnings vs Peers: SEB is expensive based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (9.5x).

Price to Earnings Ratio vs Industry

How does SEB's PE Ratio compare vs other companies in the MY Machinery Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MBL Muar Ban Lee Group Berhad
2.7xn/aUS$20.66m
JASKITA Jasa Kita Berhad
1.8xn/aUS$15.61m
No more companies available in this PE range
SEB 15.3xIndustry Avg. 21.5xNo. of Companies4PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SEB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the MY Machinery industry average (21.5x).

Price to Earnings Ratio vs Fair Ratio

What is SEB'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.

SEB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.3x
Fair PE Ration/a

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