Sime Darby Berhad

KLSE:SIME Stock Report

Market Cap: RM 15.5b

Sime Darby Berhad Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: SIME (MYR2.27) is trading below our estimate of fair value (MYR3.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SIME. This is calculated by dividing SIME's market cap by their current earnings.
What is SIME's PE Ratio?
PE Ratio12.3x
EarningsRM 1.26b
Market CapRM 15.47b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SIME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
SUNWAY Sunway Berhad
33.9x9.2%RM 28.4b
HAPSENG Hap Seng Consolidated Berhad
18.1xn/aRM 9.7b
HLIND Hong Leong Industries Berhad
11.3xn/aRM 4.4b
BJCORP Berjaya Corporation Berhad
4.2xn/aRM 1.8b
SIME Sime Darby Berhad
12.3x10.2%RM 15.5b

Price-To-Earnings vs Peers: SIME is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

How does SIME's PE Ratio compare vs other companies in the Asian Industrials Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SIME 12.3xIndustry Avg. 13.3xNo. of Companies18PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SIME is good value based on its Price-To-Earnings Ratio (12.3x) compared to the Asian Industrials industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is SIME'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.

SIME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: SIME is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

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 SIME forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 2.27
RM 2.98
+31.4%
9.5%RM 3.60RM 2.45n/a16
Nov ’25RM 2.35
RM 2.98
+26.9%
9.5%RM 3.60RM 2.45n/a16
Oct ’25RM 2.47
RM 2.98
+20.6%
9.3%RM 3.60RM 2.45n/a16
Sep ’25RM 2.48
RM 2.96
+19.4%
8.1%RM 3.35RM 2.45n/a16
Aug ’25RM 2.61
RM 3.08
+17.9%
7.1%RM 3.44RM 2.73n/a16
Jul ’25RM 2.61
RM 2.98
+14.1%
11.0%RM 3.44RM 2.21n/a15
Jun ’25RM 2.78
RM 2.97
+6.7%
10.9%RM 3.44RM 2.21n/a15
May ’25RM 2.80
RM 2.80
+0.1%
9.8%RM 3.15RM 2.21n/a15
Apr ’25RM 2.59
RM 2.78
+7.3%
9.7%RM 3.15RM 2.21n/a14
Mar ’25RM 2.68
RM 2.77
+3.3%
10.0%RM 3.15RM 2.21n/a13
Feb ’25RM 2.43
RM 2.63
+8.3%
10.7%RM 3.10RM 2.21n/a13
Jan ’25RM 2.35
RM 2.60
+10.6%
11.3%RM 3.10RM 2.18n/a14
Dec ’24RM 2.41
RM 2.59
+7.4%
11.9%RM 3.10RM 2.09n/a14
Nov ’24RM 2.27
RM 2.36
+3.7%
10.4%RM 2.70RM 1.70RM 2.3514
Oct ’24RM 2.21
RM 2.36
+6.6%
10.4%RM 2.70RM 1.70RM 2.4714
Sep ’24RM 2.30
RM 2.36
+2.4%
10.4%RM 2.70RM 1.70RM 2.4814
Aug ’24RM 2.17
RM 2.34
+7.8%
12.3%RM 2.70RM 1.70RM 2.6113
Jul ’24RM 2.05
RM 2.35
+14.4%
11.6%RM 2.70RM 1.80RM 2.6113
Jun ’24RM 2.04
RM 2.37
+16.2%
11.7%RM 2.70RM 1.80RM 2.7814
May ’24RM 2.17
RM 2.44
+12.6%
10.1%RM 2.70RM 1.80RM 2.8014
Apr ’24RM 2.15
RM 2.48
+15.5%
7.1%RM 2.70RM 2.05RM 2.5914
Mar ’24RM 2.28
RM 2.49
+9.1%
7.3%RM 2.75RM 2.05RM 2.6814
Feb ’24RM 2.31
RM 2.53
+9.5%
7.8%RM 2.76RM 2.05RM 2.4315
Jan ’24RM 2.30
RM 2.54
+10.4%
8.1%RM 2.80RM 2.05RM 2.3515
Dec ’23RM 2.17
RM 2.54
+17.0%
8.1%RM 2.80RM 2.05RM 2.4115
Nov ’23RM 2.19
RM 2.62
+19.5%
7.2%RM 2.90RM 2.26RM 2.2715

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

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