CTOS Digital Berhad Valuation

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

CTOS (MYR1.29) is trading below our estimate of [[fair value]] (MYR1.41)

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

Below Fair Value: CTOS (MYR1.29) is trading below our estimate of fair value (MYR1.41)

Significantly Below Fair Value: CTOS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CTOS. This is calculated by dividing CTOS's market cap by their current earnings.
What is CTOS's PE Ratio?
PE Ratio	22.9x
Earnings	RM 129.89m
Market Cap	RM 2.98b

CTOS 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	10.5x
Enterprise Value/EBITDA	31.7x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CTOS 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	34.9x
MYEG My E.G. Services Berhad	10.3x	3.1%	RM 6.9b
CCIB CC International Berhad	66.1x	n/a	RM 167.9m
FRONTKN Frontken Corporation Berhad	50.6x	19.4%	RM 6.5b
603357 Anhui Transport Consulting & Design InstituteLtd	12.6x	17.7%	CN¥5.3b
CTOS CTOS Digital Berhad	22.9x	13.2%	RM 3.0b

Price-To-Earnings vs Peers: CTOS is good value based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

How does CTOS's PE Ratio compare vs other companies in the Asian Professional Services Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CTOS is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the Asian Professional Services industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is CTOS'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.

CTOS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.9x
Fair PE Ratio	18.6x

Price-To-Earnings vs Fair Ratio: CTOS is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

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 CTOS forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	RM 1.29	RM 1.63 +26.4%	13.4%	RM 2.05	RM 1.25	n/a	10
Nov ’25	RM 1.20	RM 1.71 +42.4%	14.5%	RM 2.05	RM 1.25	n/a	10
Oct ’25	RM 1.20	RM 1.71 +42.4%	14.5%	RM 2.05	RM 1.25	n/a	10
Sep ’25	RM 1.30	RM 1.71 +31.5%	14.5%	RM 2.05	RM 1.25	n/a	10
Aug ’25	RM 1.42	RM 1.76 +24.0%	10.7%	RM 2.05	RM 1.45	n/a	10
Jul ’25	RM 1.48	RM 1.71 +15.6%	16.6%	RM 2.10	RM 1.15	n/a	10
Jun ’25	RM 1.40	RM 1.71 +22.2%	16.6%	RM 2.10	RM 1.15	n/a	10
May ’25	RM 1.41	RM 1.73 +22.5%	17.5%	RM 2.10	RM 1.15	n/a	10
Apr ’25	RM 1.36	RM 1.73 +27.0%	17.5%	RM 2.10	RM 1.15	n/a	10
Mar ’25	RM 1.48	RM 1.85 +25.2%	11.5%	RM 2.10	RM 1.45	n/a	10
Feb ’25	RM 1.41	RM 1.83 +29.8%	11.2%	RM 2.10	RM 1.45	n/a	10
Jan ’25	RM 1.41	RM 1.80 +27.8%	11.5%	RM 2.07	RM 1.35	n/a	10
Dec ’24	RM 1.43	RM 1.80 +26.0%	11.5%	RM 2.07	RM 1.35	n/a	10
Nov ’24	RM 1.44	RM 1.80 +25.1%	11.5%	RM 2.07	RM 1.35	RM 1.20	10
Oct ’24	RM 1.40	RM 1.80 +28.6%	11.6%	RM 2.07	RM 1.35	RM 1.20	10
Sep ’24	RM 1.40	RM 1.83 +30.8%	12.6%	RM 2.20	RM 1.35	RM 1.30	11
Aug ’24	RM 1.38	RM 1.83 +32.6%	12.7%	RM 2.20	RM 1.35	RM 1.42	11
Jul ’24	RM 1.39	RM 1.86 +33.5%	11.8%	RM 2.20	RM 1.35	RM 1.48	10
Jun ’24	RM 1.40	RM 1.86 +32.6%	11.8%	RM 2.20	RM 1.35	RM 1.40	10
May ’24	RM 1.41	RM 1.82 +29.3%	12.8%	RM 2.20	RM 1.35	RM 1.41	11
Apr ’24	RM 1.31	RM 1.85 +41.0%	13.1%	RM 2.28	RM 1.45	RM 1.36	10
Mar ’24	RM 1.40	RM 1.85 +31.9%	13.1%	RM 2.28	RM 1.45	RM 1.48	10
Feb ’24	RM 1.54	RM 1.83 +18.6%	13.9%	RM 2.28	RM 1.45	RM 1.41	10
Jan ’24	RM 1.42	RM 1.80 +26.9%	13.1%	RM 2.17	RM 1.40	RM 1.41	10
Dec ’23	RM 1.43	RM 1.80 +26.0%	13.8%	RM 2.17	RM 1.40	RM 1.43	9
Nov ’23	RM 1.39	RM 1.80 +29.7%	13.8%	RM 2.17	RM 1.40	RM 1.44	9

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