Heineken Malaysia Berhad

KLSE:HEIM Stock Report

Market Cap: RM 7.2b

Heineken Malaysia Berhad Valuation

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

Below Fair Value: HEIM (MYR23.98) is trading below our estimate of fair value (MYR25.55)

Significantly Below Fair Value: HEIM 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 HEIM?

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

The above table shows the Price to Earnings ratio for HEIM. This is calculated by dividing HEIM's market cap by their current earnings.
What is HEIM's PE Ratio?
PE Ratio17x
EarningsRM 424.97m
Market CapRM 7.24b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HEIM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
CARLSBG Carlsberg Brewery Malaysia Berhad
19x6.4%RM 6.4b
F&N Fraser & Neave Holdings Bhd
18.9x6.9%RM 10.2b
GENP Genting Plantations Berhad
18.4x5.3%RM 5.0b
FGV FGV Holdings Berhad
23.7x17.3%RM 4.2b
HEIM Heineken Malaysia Berhad
17x3.5%RM 7.2b

Price-To-Earnings vs Peers: HEIM is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

How does HEIM's PE Ratio compare vs other companies in the Asian Beverage Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
HEIM 17.0xIndustry Avg. 18.8xNo. of Companies25PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HEIM is good value based on its Price-To-Earnings Ratio (17x) compared to the Asian Beverage industry average (18.9x).

Price to Earnings Ratio vs Fair Ratio

What is HEIM'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.

HEIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: HEIM is expensive based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

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 HEIM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 23.98
RM 29.33
+22.3%
8.3%RM 34.56RM 25.30n/a8
Nov ’25RM 22.92
RM 28.20
+23.0%
6.2%RM 30.71RM 25.30n/a8
Oct ’25RM 23.76
RM 28.20
+18.7%
6.2%RM 30.71RM 25.30n/a8
Sep ’25RM 23.00
RM 28.25
+22.8%
5.9%RM 30.71RM 25.30n/a9
Aug ’25RM 22.92
RM 28.16
+22.9%
7.5%RM 30.71RM 23.68n/a9
Jul ’25RM 22.20
RM 28.16
+26.8%
7.5%RM 30.71RM 23.68n/a9
Jun ’25RM 24.00
RM 28.16
+17.3%
7.5%RM 30.71RM 23.68n/a9
May ’25RM 23.26
RM 27.93
+20.1%
7.8%RM 29.94RM 22.60n/a10
Apr ’25RM 23.70
RM 27.98
+18.1%
7.3%RM 29.94RM 23.11n/a10
Mar ’25RM 22.76
RM 28.07
+23.3%
7.5%RM 29.94RM 23.11n/a10
Feb ’25RM 24.10
RM 28.90
+19.9%
8.8%RM 33.00RM 23.11n/a10
Jan ’25RM 24.14
RM 29.11
+20.6%
7.2%RM 33.00RM 25.21n/a10
Dec ’24RM 21.82
RM 29.11
+33.4%
7.2%RM 33.00RM 25.21n/a10
Nov ’24RM 23.58
RM 30.52
+29.4%
6.8%RM 33.00RM 25.21RM 22.9211
Oct ’24RM 24.32
RM 30.30
+24.6%
7.4%RM 33.00RM 25.21RM 23.7611
Sep ’24RM 23.46
RM 30.39
+29.6%
7.2%RM 33.00RM 25.21RM 23.0012
Aug ’24RM 26.10
RM 31.23
+19.7%
7.9%RM 36.00RM 27.40RM 22.9212
Jul ’24RM 26.10
RM 30.98
+18.7%
9.0%RM 36.00RM 26.00RM 22.2013
Jun ’24RM 26.76
RM 31.21
+16.6%
9.7%RM 36.00RM 26.00RM 24.0013
May ’24RM 28.14
RM 31.15
+10.7%
9.9%RM 36.00RM 26.00RM 23.2613
Apr ’24RM 26.50
RM 31.15
+17.5%
9.9%RM 36.00RM 26.00RM 23.7013
Mar ’24RM 28.72
RM 31.01
+8.0%
9.9%RM 36.00RM 26.00RM 22.7613
Feb ’24RM 28.00
RM 29.64
+5.9%
8.1%RM 33.00RM 25.80RM 24.1013
Jan ’24RM 25.20
RM 28.95
+14.9%
12.9%RM 33.00RM 19.00RM 24.1412
Dec ’23RM 25.48
RM 28.95
+13.6%
12.9%RM 33.00RM 19.00RM 21.8212
Nov ’23RM 22.90
RM 27.53
+20.2%
11.1%RM 30.85RM 19.00RM 23.5812

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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