Shangri-La Hotels (Malaysia) Berhad Valuation

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

SHANG (MYR2) is trading below our estimate of [[fair value]] (MYR7.39)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: SHANG (MYR2) is trading below our estimate of fair value (MYR7.39)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SHANG. This is calculated by dividing SHANG's market cap by their current earnings.
What is SHANG's PE Ratio?
PE Ratio	48.4x
Earnings	RM 18.17m
Market Cap	RM 880.00m

SHANG 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	1.9x
Enterprise Value/EBITDA	8.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHANG 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	30.3x
MPHBCAP MPHB Capital Berhad	57.5x	n/a	RM 1.1b
MBRIGHT Meta Bright Group Berhad	31.6x	n/a	RM 341.7m
RGB RGB International Bhd	19.4x	61.9%	RM 570.1m
MAGNUM Magnum Berhad	12.6x	10.0%	RM 1.7b
SHANG Shangri-La Hotels (Malaysia) Berhad	48.4x	n/a	RM 880.0m

Price-To-Earnings vs Peers: SHANG is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the peer average (30.3x).

Price to Earnings Ratio vs Industry

How does SHANG's PE Ratio compare vs other companies in the Asian Hospitality Industry?

22 Companies	Price / Earnings	Estimated Growth	Market Cap

22 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SHANG is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the Asian Hospitality industry average (21x).

Price to Earnings Ratio vs Fair Ratio

What is SHANG'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.

SHANG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	48.4x
Fair PE Ratio	n/a

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