PLS Plantations Berhad Valuation

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

PLS (MYR0.56) is trading below our estimate of [[fair value]] (MYR0.63)

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

Below Fair Value: PLS (MYR0.56) is trading below our estimate of fair value (MYR0.63)

Significantly Below Fair Value: PLS 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 PLS?

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

The above table shows the Price to Sales ratio for PLS. This is calculated by dividing PLS's market cap by their current revenue.
What is PLS's PS Ratio?
PS Ratio	2.3x
Sales	RM 108.83m
Market Cap	RM 246.19m

PLS 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	3.3x
Enterprise Value/EBITDA	1999.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.6x
CEPAT Cepatwawasan Group Berhad	0.7x	n/a	RM 217.8m
GOPENG Gopeng Berhad	12.4x	n/a	RM 234.0m
MHC MHC Plantations Bhd	0.4x	n/a	RM 198.5m
HARNLEN Harn Len Corporation Bhd	1x	n/a	RM 225.3m
PLS PLS Plantations Berhad	2.3x	n/a	RM 246.2m

Price-To-Sales vs Peers: PLS is good value based on its Price-To-Sales Ratio (2.3x) compared to the peer average (3.6x).

Price to Sales Ratio vs Industry

How does PLS's PS Ratio compare vs other companies in the MY Food Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap
FGV FGV Holdings Berhad	0.2x	3.9%	US$935.38m
LHI Leong Hup International Berhad	0.2x	2.6%	US$529.51m
MSM MSM Malaysia Holdings Berhad	0.2x	2.9%	US$178.66m
MFLOUR Malayan Flour Mills Berhad	0.2x	4.7%	US$150.50m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: PLS is expensive based on its Price-To-Sales Ratio (2.3x) compared to the MY Food industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is PLS'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.

PLS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PLS's Price-To-Sales 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.

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