Velesto Energy Berhad

KLSE:VELESTO Stock Report

Market Cap: RM 1.5b

Velesto Energy Berhad Valuation

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

Below Fair Value: VELESTO (MYR0.19) is trading below our estimate of fair value (MYR0.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VELESTO. This is calculated by dividing VELESTO's market cap by their current earnings.
What is VELESTO's PE Ratio?
PE Ratio8.6x
EarningsRM 177.52m
Market CapRM 1.52b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VELESTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.5x
KEYFIELD Keyfield International Berhad
8.6x15.2%RM 1.8b
DAYANG Dayang Enterprise Holdings Bhd
6.3x-7.2%RM 2.4b
PERDANA Perdana Petroleum Berhad
4.5xn/aRM 623.6m
MHB Malaysia Marine and Heavy Engineering Holdings Berhad
6.4x1.7%RM 672.0m
VELESTO Velesto Energy Berhad
8.6x6.3%RM 1.5b

Price-To-Earnings vs Peers: VELESTO is expensive based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (6.5x).

Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VELESTO 8.6xIndustry Avg. 14.9xNo. of Companies14PE01020304050+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VELESTO is good value based on its Price-To-Earnings Ratio (8.6x) compared to the Asian Energy Services industry average (14.9x).

Price to Earnings Ratio vs Fair Ratio

What is VELESTO'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.

VELESTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.6x
Fair PE Ratio8.2x

Price-To-Earnings vs Fair Ratio: VELESTO is expensive based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.2x).

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 VELESTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 0.18
RM 0.31
+66.4%
12.1%RM 0.35RM 0.22n/a8
Nov ’25RM 0.18
RM 0.31
+66.4%
12.1%RM 0.35RM 0.22n/a8
Oct ’25RM 0.20
RM 0.31
+53.9%
12.1%RM 0.35RM 0.22n/a8
Sep ’25RM 0.21
RM 0.31
+46.4%
12.3%RM 0.35RM 0.22n/a8
Aug ’25RM 0.22
RM 0.33
+50.9%
5.4%RM 0.35RM 0.29n/a8
Jul ’25RM 0.27
RM 0.33
+25.2%
5.4%RM 0.35RM 0.29n/a8
Jun ’25RM 0.27
RM 0.33
+25.7%
5.5%RM 0.35RM 0.29n/a8
May ’25RM 0.27
RM 0.33
+20.4%
7.2%RM 0.35RM 0.29n/a8
Apr ’25RM 0.29
RM 0.33
+10.2%
7.2%RM 0.35RM 0.29n/a8
Mar ’25RM 0.28
RM 0.32
+10.5%
7.8%RM 0.35RM 0.28n/a8
Feb ’25RM 0.26
RM 0.30
+13.7%
8.6%RM 0.34RM 0.26n/a8
Jan ’25RM 0.23
RM 0.27
+19.3%
16.4%RM 0.33RM 0.17n/a8
Dec ’24RM 0.23
RM 0.27
+21.9%
16.4%RM 0.33RM 0.17n/a8
Nov ’24RM 0.26
RM 0.27
+3.9%
12.9%RM 0.30RM 0.19RM 0.188
Oct ’24RM 0.26
RM 0.24
-5.9%
16.9%RM 0.30RM 0.19RM 0.208
Sep ’24RM 0.23
RM 0.23
0.0%
18.2%RM 0.30RM 0.19RM 0.218
Aug ’24RM 0.23
RM 0.22
-5.4%
16.7%RM 0.30RM 0.19RM 0.228
Jul ’24RM 0.22
RM 0.22
-1.1%
16.7%RM 0.30RM 0.19RM 0.278
Jun ’24RM 0.23
RM 0.22
-5.4%
16.7%RM 0.30RM 0.19RM 0.278
May ’24RM 0.23
RM 0.23
-2.2%
19.2%RM 0.30RM 0.16RM 0.278
Apr ’24RM 0.21
RM 0.23
+7.1%
19.2%RM 0.30RM 0.16RM 0.298
Mar ’24RM 0.20
RM 0.23
+15.4%
19.2%RM 0.30RM 0.16RM 0.288
Feb ’24RM 0.23
RM 0.21
-10.6%
26.8%RM 0.30RM 0.14RM 0.268
Jan ’24RM 0.15
RM 0.19
+27.5%
24.6%RM 0.30RM 0.14RM 0.238
Dec ’23RM 0.15
RM 0.19
+25.0%
25.3%RM 0.30RM 0.14RM 0.238
Nov ’23RM 0.12
RM 0.16
+32.8%
36.2%RM 0.28RM 0.10RM 0.268

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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