PETRONAS Chemicals Group Berhad

KLSE:PCHEM Stock Report

Market Cap: RM54.2b

PETRONAS Chemicals Group Berhad Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: PCHEM (MYR6.89) is trading above our estimate of fair value (MYR5.96)

Significantly Below Fair Value: PCHEM is trading above our estimate of fair value.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PCHEM 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/Revenue1.8x
Enterprise Value/EBITDA13.1x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PCHEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
BKAWAN Batu Kawan Berhad
21.3xn/aRM7.9b
SCIENTX Scientex Berhad
13x9.2%RM6.5b
PMETAL Press Metal Aluminium Holdings Berhad
36.2x17.0%RM44.2b
SENFONG Seng Fong Holdings Berhad
19.5xn/aRM584.5m
PCHEM PETRONAS Chemicals Group Berhad
32.5x21.4%RM54.2b

Price-To-Earnings vs Peers: PCHEM is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does PCHEM's PE Ratio compare vs other companies in the Asian Chemicals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.0%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.0%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: PCHEM is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the Asian Chemicals industry average (23.2x).

Price to Earnings Ratio vs Fair Ratio

What is PCHEM'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.

PCHEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.5x
Fair PE Ratio30.1x

Price-To-Earnings vs Fair Ratio: PCHEM is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the estimated Fair Price-To-Earnings Ratio (30.1x).

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 PCHEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM6.89
RM6.43
-6.7%
14.3%RM8.50RM5.05n/a18
Apr ’25RM6.75
RM6.50
-3.8%
14.3%RM8.50RM5.05n/a18
Mar ’25RM6.93
RM6.51
-6.0%
14.2%RM8.50RM5.05n/a18
Feb ’25RM6.77
RM6.57
-2.9%
11.8%RM8.50RM5.35n/a18
Jan ’25RM7.16
RM6.51
-9.1%
11.8%RM8.50RM5.35n/a18
Dec ’24RM7.20
RM6.52
-9.4%
11.3%RM8.50RM5.35n/a17
Nov ’24RM7.14
RM6.71
-6.1%
11.0%RM8.10RM5.35n/a17
Oct ’24RM7.19
RM6.64
-7.6%
11.6%RM8.10RM5.35n/a18
Sep ’24RM7.12
RM6.56
-7.9%
11.7%RM8.10RM5.35n/a18
Aug ’24RM6.85
RM6.88
+0.4%
15.1%RM9.94RM5.68n/a18
Jul ’24RM6.00
RM7.05
+17.5%
16.5%RM9.94RM5.83n/a18
Jun ’24RM6.49
RM7.59
+17.0%
21.1%RM10.82RM5.83n/a18
May ’24RM7.08
RM8.28
+16.9%
14.5%RM10.82RM6.54RM6.7818
Apr ’24RM7.07
RM8.31
+17.5%
14.1%RM10.82RM6.54RM6.7518
Mar ’24RM7.20
RM8.46
+17.6%
15.6%RM11.30RM6.54RM6.9319
Feb ’24RM8.35
RM10.00
+19.7%
12.4%RM12.10RM7.20RM6.7719
Jan ’24RM8.60
RM10.00
+16.3%
12.7%RM12.10RM7.20RM7.1618
Dec ’23RM8.67
RM10.00
+15.3%
12.7%RM12.10RM7.20RM7.2018
Nov ’23RM8.63
RM10.34
+19.8%
12.1%RM12.10RM7.20RM7.1418
Oct ’23RM8.39
RM10.43
+24.3%
12.6%RM12.10RM7.20RM7.1918
Sep ’23RM8.78
RM10.41
+18.6%
12.8%RM12.10RM7.20RM7.1218
Aug ’23RM8.95
RM10.99
+22.8%
14.0%RM14.00RM7.20RM6.8517
Jul ’23RM9.08
RM11.04
+21.6%
13.0%RM14.00RM7.20RM6.0018
Jun ’23RM10.06
RM11.04
+9.7%
13.0%RM14.00RM7.20RM6.4918
May ’23RM10.22
RM11.00
+7.6%
13.1%RM14.00RM7.20RM7.0819

Analyst Forecast: Target price is lower than the current share price.

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