N2N Connect Berhad Valuation

Q: What is the Fair Price of N2N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

N2N (MYR0.48) is trading above our estimate of [[fair value]] (MYR0.15)

Is N2N 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 N2N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: N2N (MYR0.48) is trading above our estimate of fair value (MYR0.15)

Significantly Below Fair Value: N2N is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for N2N?

Key metric: As N2N is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for N2N. This is calculated by dividing N2N's market cap by their current earnings.
What is N2N's PE Ratio?
PE Ratio	17.9x
Earnings	RM 14.85m
Market Cap	RM 265.15m

N2N 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	1x
Enterprise Value/EBITDA	5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does N2N's PE Ratio compare to its peers?

The above table shows the PE ratio for N2N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	53.2x
CUSCAPI Cuscapi Berhad	138.3x	n/a	RM 174.8m
AGMO Agmo Holdings Berhad	24.8x	n/a	RM 165.8m
IFCAMSC IFCA MSC Berhad	28.2x	n/a	RM 380.4m
EFORCE Excel Force MSC Berhad	21.4x	n/a	RM 176.9m
N2N N2N Connect Berhad	17.9x	n/a	RM 265.1m

Price-To-Earnings vs Peers: N2N is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (53.2x).

Price to Earnings Ratio vs Industry

How does N2N's PE Ratio compare vs other companies in the Asian Software Industry?

8 Companies	Price / Earnings	Estimated Growth	Market Cap

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: N2N is good value based on its Price-To-Earnings Ratio (17.9x) compared to the Asian Software industry average (29.2x).

Price to Earnings Ratio vs Fair Ratio

What is N2N'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.

N2N PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate N2N's Price-To-Earnings Fair Ratio for valuation analysis.

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.

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