Pharmaniaga Berhad Valuation

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

PHARMA (MYR0.36) is trading below our estimate of [[fair value]] (MYR0.67)

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

Below Fair Value: PHARMA (MYR0.36) is trading below our estimate of fair value (MYR0.67)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PHARMA. This is calculated by dividing PHARMA's market cap by their current revenue.
What is PHARMA's PS Ratio?
PS Ratio	0.1x
Sales	RM 3.48b
Market Cap	RM 511.64m

PHARMA 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	0.5x
Enterprise Value/EBITDA	44x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PHARMA 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	2.3x
UMC UMediC Group Berhad	4.1x	18.9%	RM 226.2m
G3 G3 Global Berhad	1x	n/a	RM 94.3m
OPTIMAX Optimax Holdings Berhad	2.9x	11.3%	RM 347.7m
FOCUSP Focus Point Holdings Berhad	1.3x	8.1%	RM 374.2m
PHARMA Pharmaniaga Berhad	0.1x	1.9%	RM 511.6m

Price-To-Sales vs Peers: PHARMA is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does PHARMA's PS Ratio compare vs other companies in the Asian Healthcare Industry?

62 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.6x	6.2%
PHARMA Pharmaniaga Berhad	0.1x	1.9%	US$114.52m

62 Companies		Estimated Growth	Market Cap
Industry Avg.	1.6x	2.4%
PHARMA Pharmaniaga Berhad	0.1x	115.2%	US$114.52m

No more companies

Price-To-Sales vs Industry: PHARMA is good value based on its Price-To-Sales Ratio (0.1x) compared to the Asian Healthcare industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is PHARMA'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.

PHARMA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: PHARMA is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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.