7-Eleven Malaysia Holdings Berhad

KLSE:SEM Stock Report

Market Cap: RM 2.2b

7-Eleven Malaysia Holdings Berhad Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SEM (MYR2) is trading below our estimate of fair value (MYR5.98)

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

Key Valuation Metric

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

Key metric: As SEM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SEM. This is calculated by dividing SEM's market cap by their current revenue.
What is SEM's PS Ratio?
PS Ratio0.8x
SalesRM 2.87b
Market CapRM 2.22b

Price to Sales Ratio vs Peers

How does SEM's PS Ratio compare to its peers?

The above table shows the PS ratio for SEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
AEON Aeon (M) Bhd
0.5x3.7%RM 2.1b
WELLS Wellspire Holdings Berhad
3.9xn/aRM 477.1m
99SMART 99 Speed Mart Retail Holdings Berhad
2.2x10.8%RM 19.7b
2429 Beijing UBOX Online Technology
1.1xn/aHK$3.2b
SEM 7-Eleven Malaysia Holdings Berhad
0.8x8.3%RM 2.2b

Price-To-Sales vs Peers: SEM is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

How does SEM's PS Ratio compare vs other companies in the Asian Consumer Retailing Industry?

25 CompaniesPrice / SalesEstimated GrowthMarket Cap
SEM 0.8xIndustry Avg. 0.5xNo. of Companies53PS00.40.81.21.62+
25 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SEM is expensive based on its Price-To-Sales Ratio (0.8x) compared to the Asian Consumer Retailing industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is SEM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: SEM is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (1x).

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 SEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 2.00
RM 1.96
-2.0%
2.2%RM 2.00RM 1.90n/a3
Nov ’25RM 1.92
RM 1.98
+3.3%
0.6%RM 2.00RM 1.97n/a3
Oct ’25RM 1.95
RM 1.98
+1.7%
0.6%RM 2.00RM 1.97n/a3
Sep ’25RM 1.97
RM 1.98
+0.7%
0.6%RM 2.00RM 1.97n/a3
Aug ’25RM 1.94
RM 1.98
+2.2%
0.6%RM 2.00RM 1.97n/a3
Jul ’25RM 1.97
RM 1.98
+0.7%
0.6%RM 2.00RM 1.97n/a3
Jun ’25RM 1.98
RM 1.99
+0.7%
0.5%RM 2.00RM 1.98n/a3
May ’25RM 2.03
RM 1.99
-1.8%
0.5%RM 2.00RM 1.98n/a3
Apr ’25RM 1.99
RM 1.99
+0.2%
0.5%RM 2.00RM 1.98n/a3
Mar ’25RM 2.00
RM 2.05
+2.5%
2.4%RM 2.10RM 2.00n/a2
Feb ’25RM 2.00
RM 2.23
+11.5%
11.6%RM 2.59RM 2.00n/a3
Jan ’25RM 2.00
RM 2.23
+11.5%
11.6%RM 2.59RM 2.00n/a3
Dec ’24RM 2.00
RM 2.20
+9.9%
10.5%RM 2.59RM 2.00n/a4
Nov ’24RM 1.91
RM 2.22
+16.4%
9.5%RM 2.59RM 2.10RM 1.924
Oct ’24RM 1.99
RM 2.22
+11.7%
9.5%RM 2.59RM 2.10RM 1.954
Sep ’24RM 1.98
RM 2.22
+12.2%
9.5%RM 2.59RM 2.10RM 1.974
Aug ’24RM 2.00
RM 2.17
+8.6%
11.7%RM 2.59RM 1.90RM 1.944
Jul ’24RM 2.00
RM 2.12
+6.0%
8.1%RM 2.38RM 1.90RM 1.974
Jun ’24RM 2.00
RM 2.12
+6.0%
8.1%RM 2.38RM 1.90RM 1.984
May ’24RM 2.04
RM 2.07
+1.3%
6.0%RM 2.20RM 1.90RM 2.033
Apr ’24RM 2.04
RM 2.07
+1.3%
6.0%RM 2.20RM 1.90RM 1.993
Mar ’24RM 1.98
RM 1.87
-5.7%
5.4%RM 2.00RM 1.72RM 2.004
Feb ’24RM 2.05
RM 1.98
-3.4%
11.9%RM 2.35RM 1.72RM 2.004
Jan ’24RM 1.93
RM 1.98
+2.6%
11.9%RM 2.35RM 1.72RM 2.004
Dec ’23RM 1.63
RM 1.98
+21.5%
11.9%RM 2.35RM 1.72RM 2.004
Nov ’23RM 2.36
RM 1.88
-20.3%
8.9%RM 2.05RM 1.62RM 1.914

Analyst Forecast: Target price is lower than the current share price.

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