Sime Darby Berhad

KLSE:SIME Stock Report

Mkt Cap: RM13.8b

We’ve recently updated our valuation analysis.

Sime Darby Berhad Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SIME 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/Revenue0.4x
Enterprise Value/EBITDA8.1x
PEG Ratio2.1x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average52.9x
HAPSENG Hap Seng Consolidated Berhad
10.2xn/aRM8.6b
SUNWAY Sunway Berhad
12.2x6.7%RM7.7b
HLIND Hong Leong Industries Berhad
9.4xn/aRM2.7b
BJCORP Berjaya Corporation Berhad
179.8xn/aRM1.6b
SIME Sime Darby Berhad
12.6x5.3%RM13.8b

Price-To-Earnings vs Peers: SIME is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (52.9x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SIME is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the Asian Industrials industry average (9.8x)

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 Ratio12.6x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: SIME is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

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 (MYR2.03) is trading below our estimate of fair value (MYR2.81)

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

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
CurrentRM2.03
RM2.37
+16.8%
11.7%RM2.70RM1.80n/a14
Jun ’24RM2.04
RM2.37
+16.2%
11.7%RM2.70RM1.80n/a14
May ’24RM2.17
RM2.44
+12.6%
10.1%RM2.70RM1.80n/a14
Apr ’24RM2.15
RM2.48
+15.5%
7.1%RM2.70RM2.05n/a14
Mar ’24RM2.28
RM2.49
+9.1%
7.3%RM2.75RM2.05n/a14
Feb ’24RM2.31
RM2.53
+9.5%
7.8%RM2.76RM2.05n/a15
Jan ’24RM2.30
RM2.54
+10.4%
8.1%RM2.80RM2.05n/a15
Dec ’23RM2.17
RM2.54
+17.0%
8.1%RM2.80RM2.05n/a15
Nov ’23RM2.19
RM2.62
+19.5%
7.2%RM2.90RM2.26n/a15
Oct ’23RM2.14
RM2.62
+22.3%
7.2%RM2.90RM2.26n/a15
Sep ’23RM2.29
RM2.62
+14.3%
7.2%RM2.90RM2.26n/a15
Aug ’23RM2.40
RM2.57
+7.1%
6.4%RM2.88RM2.26n/a15
Jul ’23RM2.16
RM2.59
+19.9%
7.4%RM3.00RM2.26n/a15
Jun ’23RM2.19
RM2.62
+19.7%
6.6%RM3.00RM2.32RM2.0415
May ’23RM2.34
RM2.66
+13.6%
7.8%RM3.02RM2.32RM2.1715
Apr ’23RM2.40
RM2.66
+10.7%
7.8%RM3.02RM2.32RM2.1515
Mar ’23RM2.30
RM2.64
+14.7%
8.6%RM3.02RM2.30RM2.2815
Feb ’23RM2.15
RM2.64
+22.6%
8.5%RM3.02RM2.30RM2.3115
Jan ’23RM2.32
RM2.63
+13.3%
8.7%RM3.02RM2.30RM2.3014
Dec ’22RM2.16
RM2.63
+21.7%
8.7%RM3.02RM2.30RM2.1714
Nov ’22RM2.24
RM2.73
+22.1%
4.9%RM2.98RM2.46RM2.1914
Oct ’22RM2.26
RM2.75
+21.6%
4.9%RM2.98RM2.46RM2.1414
Sep ’22RM2.36
RM2.95
+24.9%
26.2%RM5.80RM2.46RM2.2915
Aug ’22RM2.15
RM2.90
+35.1%
27.1%RM5.80RM2.35RM2.4015
Jul ’22RM2.18
RM2.90
+33.2%
27.1%RM5.80RM2.35RM2.1615
Jun ’22RM2.27
RM2.91
+28.0%
27.1%RM5.80RM2.35RM2.1915

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies