PETRONAS Chemicals Group Berhad

KLSE:PCHEM Stock Report

Market Cap: RM 37.2b

PETRONAS Chemicals Group Berhad Valuation

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

Valuation Score

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

Below Fair Value: PCHEM (MYR4.65) is trading below our estimate of fair value (MYR7.41)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PCHEM. This is calculated by dividing PCHEM's market cap by their current earnings.
What is PCHEM's PE Ratio?
PE Ratio48.4x
EarningsRM 768.00m
Market CapRM 37.20b

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 Average16.7x
SCIENTX Scientex Berhad
12.5x8.2%RM 6.7b
BKAWAN Batu Kawan Berhad
26.1xn/aRM 7.8b
TMK TMK Chemical Bhd
17.2x3.5%RM 1.8b
SENFONG Seng Fong Holdings Berhad
11x10.2%RM 692.8m
PCHEM PETRONAS Chemicals Group Berhad
48.4x28.8%RM 37.2b

Price-To-Earnings vs Peers: PCHEM is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
PCHEM 48.4xIndustry Avg. 17.5xNo. of Companies3PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PCHEM is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the MY Chemicals industry average (17.5x).

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 Ratio48.4x
Fair PE Ratio28.5x

Price-To-Earnings vs Fair Ratio: PCHEM is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

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
CurrentRM 4.65
RM 5.04
+8.3%
13.5%RM 6.20RM 3.78n/a18
Dec ’25RM 4.66
RM 5.04
+8.1%
13.5%RM 6.20RM 3.78n/a18
Nov ’25RM 5.37
RM 5.70
+6.1%
14.6%RM 7.54RM 4.18n/a17
Oct ’25RM 5.80
RM 5.79
-0.2%
15.3%RM 7.54RM 4.18n/a18
Sep ’25RM 5.81
RM 5.84
+0.4%
14.9%RM 7.54RM 4.18n/a18
Aug ’25RM 5.78
RM 6.34
+9.7%
13.6%RM 8.50RM 5.05n/a18
Jul ’25RM 6.27
RM 6.33
+1.0%
14.7%RM 8.50RM 4.90n/a18
Jun ’25RM 6.71
RM 6.33
-5.6%
14.8%RM 8.50RM 4.90n/a18
May ’25RM 6.78
RM 6.40
-5.6%
14.9%RM 8.50RM 4.90n/a18
Apr ’25RM 6.75
RM 6.50
-3.8%
14.3%RM 8.50RM 5.05n/a18
Mar ’25RM 6.93
RM 6.51
-6.0%
14.2%RM 8.50RM 5.05n/a18
Feb ’25RM 6.77
RM 6.57
-2.9%
11.8%RM 8.50RM 5.35n/a18
Jan ’25RM 7.16
RM 6.51
-9.1%
11.8%RM 8.50RM 5.35n/a18
Dec ’24RM 7.20
RM 6.52
-9.4%
11.3%RM 8.50RM 5.35RM 4.6617
Nov ’24RM 7.14
RM 6.71
-6.1%
11.0%RM 8.10RM 5.35RM 5.3717
Oct ’24RM 7.19
RM 6.64
-7.6%
11.6%RM 8.10RM 5.35RM 5.8018
Sep ’24RM 7.12
RM 6.56
-7.9%
11.7%RM 8.10RM 5.35RM 5.8118
Aug ’24RM 6.85
RM 6.88
+0.4%
15.1%RM 9.94RM 5.68RM 5.7818
Jul ’24RM 6.00
RM 7.05
+17.5%
16.5%RM 9.94RM 5.83RM 6.2718
Jun ’24RM 6.49
RM 7.59
+17.0%
21.1%RM 10.82RM 5.83RM 6.7118
May ’24RM 7.08
RM 8.28
+16.9%
14.5%RM 10.82RM 6.54RM 6.7818
Apr ’24RM 7.07
RM 8.31
+17.5%
14.1%RM 10.82RM 6.54RM 6.7518
Mar ’24RM 7.20
RM 8.46
+17.6%
15.6%RM 11.30RM 6.54RM 6.9319
Feb ’24RM 8.35
RM 10.00
+19.7%
12.4%RM 12.10RM 7.20RM 6.7719
Jan ’24RM 8.60
RM 10.00
+16.3%
12.7%RM 12.10RM 7.20RM 7.1618
Dec ’23RM 8.67
RM 10.00
+15.3%
12.7%RM 12.10RM 7.20RM 7.2018

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 17:58
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

PETRONAS Chemicals Group Berhad is covered by 34 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Muhammad Afif Bin ZulkapllyAffin Hwang Investment Bank
Arhnue TanAlliance Research Sdn. Bhd.
Khir GohAmInvestment Bank Berhad