Ranhill Utilities Berhad

KLSE:RANHILL Stock Report

Market Cap: RM 1.7b

Ranhill Utilities Berhad Valuation

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

Below Fair Value: RANHILL (MYR1.33) is trading below our estimate of fair value (MYR2.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RANHILL. This is calculated by dividing RANHILL's market cap by their current earnings.
What is RANHILL's PE Ratio?
PE Ratio32.8x
EarningsRM 52.61m
Market CapRM 1.72b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RANHILL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.2x
TALIWRK Taliworks Corporation Berhad
29.6x19.3%RM 1.5b
PBA PBA Holdings Bhd
9.5xn/aRM 744.7m
MFCB Mega First Corporation Berhad
9.5x0.6%RM 4.0b
GASMSIA Gas Malaysia Berhad
12.2x0.3%RM 4.9b
RANHILL Ranhill Utilities Berhad
32.8x3.3%RM 1.7b

Price-To-Earnings vs Peers: RANHILL is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RANHILL 32.8xIndustry Avg. 14.9xNo. of Companies9PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RANHILL is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the Asian Water Utilities industry average (14.9x).

Price to Earnings Ratio vs Fair Ratio

What is RANHILL'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.

RANHILL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.8x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: RANHILL is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

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 RANHILL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 1.33
RM 1.04
-21.6%
8.0%RM 1.10RM 0.90n/a4
Nov ’25RM 1.23
RM 1.03
-16.1%
7.5%RM 1.10RM 0.90n/a4
Oct ’25RM 1.30
RM 1.03
-20.6%
7.5%RM 1.10RM 0.90n/a4
Sep ’25RM 1.30
RM 1.03
-20.6%
7.5%RM 1.10RM 0.90n/a4
Aug ’25RM 1.47
RM 1.05
-28.9%
8.7%RM 1.15RM 0.90n/a4
Jul ’25RM 1.46
RM 1.05
-28.4%
8.7%RM 1.15RM 0.90n/a4
Jun ’25RM 1.34
RM 1.05
-22.0%
8.7%RM 1.15RM 0.90n/a4
May ’25RM 1.12
RM 1.02
-8.7%
6.9%RM 1.07RM 0.90n/a4
Apr ’25RM 1.09
RM 1.02
-6.2%
6.9%RM 1.07RM 0.90n/a4
Mar ’25RM 1.12
RM 0.95
-14.7%
11.6%RM 1.06RM 0.80n/a4
Feb ’25RM 1.13
RM 0.93
-17.9%
19.7%RM 1.14RM 0.70n/a4
Jan ’25RM 0.90
RM 0.89
-1.4%
16.8%RM 1.09RM 0.70n/a4
Dec ’24RM 0.84
RM 0.89
+5.0%
16.8%RM 1.09RM 0.70n/a4
Nov ’24RM 0.73
RM 0.70
-4.1%
10.1%RM 0.80RM 0.60RM 1.234
Oct ’24RM 0.65
RM 0.70
+8.5%
10.1%RM 0.80RM 0.60RM 1.304
Sep ’24RM 0.67
RM 0.69
+2.6%
7.5%RM 0.73RM 0.60RM 1.304
Aug ’24RM 0.57
RM 0.69
+21.5%
4.8%RM 0.73RM 0.65RM 1.474
Jul ’24RM 0.53
RM 0.69
+31.9%
4.8%RM 0.73RM 0.65RM 1.464
Jun ’24RM 0.54
RM 0.69
+28.0%
3.9%RM 0.72RM 0.65RM 1.344
May ’24RM 0.60
RM 0.69
+15.4%
5.4%RM 0.75RM 0.65RM 1.124
Apr ’24RM 0.49
RM 0.66
+35.2%
5.7%RM 0.70RM 0.60RM 1.094
Mar ’24RM 0.46
RM 0.65
+39.8%
5.9%RM 0.70RM 0.60RM 1.124
Feb ’24RM 0.51
RM 0.59
+15.0%
8.3%RM 0.67RM 0.55RM 1.134
Jan ’24RM 0.46
RM 0.59
+30.2%
8.3%RM 0.67RM 0.55RM 0.904
Dec ’23RM 0.43
RM 0.57
+33.7%
12.1%RM 0.67RM 0.48RM 0.844
Nov ’23RM 0.38
RM 0.59
+55.9%
10.2%RM 0.67RM 0.50RM 0.734

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

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