PETRONAS Gas Berhad Valuation

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

PETGAS (MYR18.16) is trading below our estimate of [[fair value]] (MYR19.79)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PETGAS (MYR18.16) is trading below our estimate of fair value (MYR19.79)

Significantly Below Fair Value: PETGAS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PETGAS. This is calculated by dividing PETGAS's market cap by their current preferred multiple.
What is PETGAS's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	RM 35.93b

PETGAS 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	5.6x
Enterprise Value/EBITDA	10.6x
PEG Ratio	5.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PETGAS 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	18x
GASMSIA Gas Malaysia Berhad	12.1x	-0.2%	RM 4.7b
YTL YTL Corporation Berhad	17.8x	9.3%	RM 38.4b
YTLPOWR YTL Power International Berhad	9.6x	5.1%	RM 34.0b
TENAGA Tenaga Nasional Berhad	32.5x	21.3%	RM 80.8b
PETGAS PETRONAS Gas Berhad	19.4x	3.6%	RM 35.9b

Price-To-Earnings vs Peers: PETGAS is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does PETGAS's PE Ratio compare vs other companies in the Asian Gas Utilities Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.0%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.0%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: PETGAS is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the Asian Gas Utilities industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is PETGAS'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.

PETGAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.4x
Fair PE Ratio	18x

Price-To-Earnings vs Fair Ratio: PETGAS is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the estimated Fair Price-To-Earnings Ratio (18x).

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 PETGAS forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	RM 18.16	RM 18.62 +2.5%	6.4%	RM 20.60	RM 16.52	n/a	11
Aug ’25	RM 17.88	RM 18.62 +4.1%	6.4%	RM 20.60	RM 16.52	n/a	11
Jul ’25	RM 17.76	RM 18.48 +4.1%	6.7%	RM 20.60	RM 16.52	n/a	12
Jun ’25	RM 18.26	RM 18.48 +1.2%	6.7%	RM 20.60	RM 16.52	n/a	12
May ’25	RM 18.00	RM 18.35 +1.9%	6.8%	RM 20.60	RM 16.52	n/a	13
Apr ’25	RM 18.26	RM 18.35 +0.5%	6.8%	RM 20.60	RM 16.52	n/a	13
Mar ’25	RM 17.82	RM 18.26 +2.5%	6.8%	RM 20.60	RM 16.46	n/a	13
Feb ’25	RM 17.74	RM 18.02 +1.6%	7.2%	RM 20.60	RM 15.98	n/a	13
Jan ’25	RM 17.40	RM 18.02 +3.6%	7.2%	RM 20.60	RM 15.98	n/a	13
Dec ’24	RM 16.86	RM 18.02 +6.9%	7.2%	RM 20.60	RM 15.98	n/a	13
Nov ’24	RM 17.08	RM 17.93 +5.0%	7.1%	RM 20.60	RM 15.98	n/a	13
Oct ’24	RM 16.84	RM 17.93 +6.5%	7.1%	RM 20.60	RM 15.98	n/a	13
Sep ’24	RM 17.26	RM 17.93 +3.9%	7.1%	RM 20.60	RM 15.98	n/a	13
Aug ’24	RM 17.12	RM 17.88 +4.4%	7.2%	RM 20.60	RM 15.98	RM 17.88	13
Jul ’24	RM 16.70	RM 17.88 +7.0%	7.2%	RM 20.60	RM 15.98	RM 17.76	13
Jun ’24	RM 16.56	RM 17.88 +7.9%	7.2%	RM 20.60	RM 15.98	RM 18.26	13
May ’24	RM 16.90	RM 17.94 +6.2%	7.0%	RM 20.60	RM 15.98	RM 18.00	13
Apr ’24	RM 16.48	RM 17.94 +8.9%	7.0%	RM 20.60	RM 15.98	RM 18.26	13
Mar ’24	RM 16.54	RM 17.85 +7.9%	7.1%	RM 20.60	RM 15.98	RM 17.82	12
Feb ’24	RM 16.82	RM 17.85 +6.1%	5.9%	RM 20.20	RM 16.40	RM 17.74	11
Jan ’24	RM 17.12	RM 17.75 +3.7%	5.9%	RM 20.20	RM 16.40	RM 17.40	12
Dec ’23	RM 16.82	RM 17.86 +6.2%	7.0%	RM 20.49	RM 16.40	RM 16.86	12
Nov ’23	RM 16.98	RM 17.86 +5.2%	6.5%	RM 20.20	RM 16.40	RM 17.08	12
Oct ’23	RM 16.50	RM 17.86 +8.2%	6.5%	RM 20.20	RM 16.40	RM 16.84	12
Sep ’23	RM 17.16	RM 17.86 +4.1%	6.5%	RM 20.20	RM 16.40	RM 17.26	12
Aug ’23	RM 17.14	RM 18.44 +7.6%	10.9%	RM 24.09	RM 16.70	RM 17.12	12

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