Sarawak Oil Palms Berhad

KLSE:SOP Stock Report

Market Cap: RM 2.8b

Sarawak Oil Palms Berhad Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: SOP (MYR3.23) is trading below our estimate of fair value (MYR8.92)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SOP. This is calculated by dividing SOP's market cap by their current earnings.
What is SOP's PE Ratio?
PE Ratio7.3x
EarningsRM 393.72m
Market CapRM 2.83b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SOP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.4x
KMLOONG Kim Loong Resources Berhad
15.1x3.8%RM 2.6b
KSENG Keck Seng (Malaysia) Berhad
13.1xn/aRM 2.1b
JPG Johor Plantations Group Berhad
13.7x1.3%RM 3.3b
FGV FGV Holdings Berhad
23.9x5.7%RM 4.2b
SOP Sarawak Oil Palms Berhad
7.3x-3.6%RM 2.8b

Price-To-Earnings vs Peers: SOP is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

How does SOP's PE Ratio compare vs other companies in the MY Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
SOP 7.3xIndustry Avg. 13.3xNo. of Companies10PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SOP is good value based on its Price-To-Earnings Ratio (7.3x) compared to the MY Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is SOP'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.

SOP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: SOP is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).

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 SOP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 3.23
RM 3.56
+10.3%
15.8%RM 4.15RM 3.00n/a4
Nov ’25RM 3.27
RM 3.43
+4.7%
13.4%RM 4.10RM 3.00n/a4
Oct ’25RM 2.96
RM 3.43
+15.7%
13.4%RM 4.10RM 3.00n/a4
Sep ’25RM 2.93
RM 3.43
+16.9%
13.4%RM 4.10RM 3.00n/a4
Aug ’25RM 2.86
RM 3.12
+9.1%
4.1%RM 3.30RM 3.00n/a4
Jul ’25RM 2.81
RM 3.12
+11.0%
4.1%RM 3.30RM 3.00n/a4
Jun ’25RM 2.89
RM 3.12
+8.0%
4.1%RM 3.30RM 3.00n/a4
May ’25RM 3.05
RM 3.03
-0.7%
6.1%RM 3.20RM 2.74n/a4
Apr ’25RM 3.09
RM 3.03
-1.9%
6.1%RM 3.20RM 2.74n/a4
Mar ’25RM 2.96
RM 3.03
+2.4%
6.1%RM 3.20RM 2.74n/a4
Feb ’25RM 2.76
RM 2.90
+5.1%
8.4%RM 3.15RM 2.50n/a4
Jan ’25RM 2.59
RM 2.90
+12.0%
8.4%RM 3.15RM 2.50n/a4
Dec ’24RM 2.62
RM 2.90
+10.7%
8.4%RM 3.15RM 2.50n/a4
Nov ’24RM 2.55
RM 2.68
+5.0%
13.8%RM 3.00RM 2.05RM 3.274
Oct ’24RM 2.57
RM 2.68
+4.2%
13.8%RM 3.00RM 2.05RM 2.964
Sep ’24RM 2.58
RM 2.68
+3.8%
13.8%RM 3.00RM 2.05RM 2.934
Aug ’24RM 2.57
RM 2.70
+4.9%
14.4%RM 3.00RM 2.05RM 2.864
Jul ’24RM 2.45
RM 2.44
-0.5%
10.1%RM 2.73RM 2.05RM 2.814
Jun ’24RM 2.41
RM 2.44
+1.1%
10.1%RM 2.73RM 2.05RM 2.894
May ’24RM 2.48
RM 2.48
-0.2%
7.6%RM 2.73RM 2.20RM 3.054
Apr ’24RM 2.39
RM 2.54
+6.2%
8.8%RM 2.75RM 2.20RM 3.094
Mar ’24RM 2.55
RM 2.54
-0.5%
8.8%RM 2.75RM 2.20RM 2.964
Feb ’24RM 2.65
RM 2.78
+4.9%
7.6%RM 3.00RM 2.47RM 2.764
Jan ’24RM 2.60
RM 2.78
+6.9%
7.6%RM 3.00RM 2.47RM 2.594
Dec ’23RM 2.57
RM 2.78
+8.2%
7.6%RM 3.00RM 2.47RM 2.624
Nov ’23RM 2.57
RM 2.77
+7.9%
7.8%RM 3.00RM 2.47RM 2.554

Analyst Forecast: Target price is less than 20% higher than the current share price.

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