Malayan Cement Berhad

KLSE:MCEMENT Stock Report

Market Cap: RM 7.7b

Malayan Cement Berhad Valuation

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

Below Fair Value: MCEMENT (MYR5.75) is trading below our estimate of fair value (MYR10.2)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MCEMENT 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/Revenue2.3x
Enterprise Value/EBITDA10.1x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MCEMENT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.3x
HUMEIND Hume Cement Industries Berhad
13.3x15.0%RM 2.8b
CMSB Cahya Mata Sarawak Berhad
13.8x15.8%RM 1.5b
OKA OKA Corporation Bhd
18.6xn/aRM 173.0m
CEPCO Concrete Engineering Products Berhad
15.7xn/aRM 79.1m
MCEMENT Malayan Cement Berhad
19.3x9.4%RM 7.7b

Price-To-Earnings vs Peers: MCEMENT is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (15.3x).


Price to Earnings Ratio vs Industry

How does MCEMENT's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MCEMENT is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the Asian Basic Materials industry average (16.1x).


Price to Earnings Ratio vs Fair Ratio

What is MCEMENT'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.

MCEMENT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.3x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: MCEMENT is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).


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 MCEMENT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 5.75
RM 6.52
+13.4%
5.9%RM 7.18RM 6.03n/a6
Jul ’25RM 5.00
RM 6.52
+30.4%
5.9%RM 7.18RM 6.03n/a6
Jun ’25RM 5.20
RM 6.60
+26.8%
5.8%RM 7.18RM 6.03n/a5
May ’25RM 5.00
RM 5.71
+14.2%
4.0%RM 6.00RM 5.33n/a5
Apr ’25RM 4.92
RM 5.71
+16.1%
4.0%RM 6.00RM 5.33n/a5
Mar ’25RM 5.18
RM 5.39
+4.1%
12.7%RM 6.00RM 4.10n/a5
Feb ’25RM 4.74
RM 4.94
+4.1%
12.3%RM 6.00RM 4.10n/a5
Jan ’25RM 4.23
RM 4.94
+16.7%
12.3%RM 6.00RM 4.10n/a5
Dec ’24RM 4.22
RM 4.94
+17.0%
12.3%RM 6.00RM 4.10n/a5
Nov ’24RM 3.67
RM 4.49
+22.2%
13.0%RM 5.55RM 3.85n/a5
Oct ’24RM 3.67
RM 4.49
+22.2%
13.0%RM 5.55RM 3.85n/a5
Sep ’24RM 3.76
RM 4.49
+19.3%
13.0%RM 5.55RM 3.85n/a5
Aug ’24RM 3.20
RM 3.84
+19.9%
19.2%RM 5.08RM 2.78n/a5
Jul ’24RM 3.07
RM 3.58
+16.6%
22.8%RM 5.08RM 2.78RM 5.005
Jun ’24RM 2.66
RM 3.13
+17.7%
15.3%RM 3.97RM 2.61RM 5.205
May ’24RM 2.46
RM 2.63
+6.9%
7.3%RM 2.90RM 2.36RM 5.005
Apr ’24RM 2.45
RM 2.63
+7.3%
7.3%RM 2.90RM 2.36RM 4.925
Mar ’24RM 2.25
RM 2.63
+16.9%
7.3%RM 2.90RM 2.36RM 5.185
Feb ’24RM 2.46
RM 2.50
+1.6%
8.9%RM 2.78RM 2.15RM 4.745
Jan ’24RM 2.12
RM 2.50
+17.9%
8.9%RM 2.78RM 2.15RM 4.235
Dec ’23RM 2.08
RM 2.50
+20.2%
8.9%RM 2.78RM 2.15RM 4.225
Nov ’23RM 2.11
RM 2.52
+19.4%
10.6%RM 2.88RM 2.20RM 3.675
Oct ’23RM 1.88
RM 2.69
+43.1%
15.0%RM 3.30RM 2.20RM 3.675
Sep ’23RM 2.11
RM 2.69
+27.5%
15.0%RM 3.30RM 2.20RM 3.765
Aug ’23RM 2.16
RM 2.91
+34.9%
9.1%RM 3.30RM 2.50RM 3.205
Jul ’23RM 2.19
RM 2.91
+33.1%
9.1%RM 3.30RM 2.50RM 3.075

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


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