Asian Undervalued Small Caps With Insider Action In June 2025
As global markets navigate a complex landscape marked by geopolitical tensions and economic uncertainties, the performance of smaller-cap indexes has stood out, particularly in Asia where investor sentiment is influenced by mixed economic data from major players like China. This environment presents unique opportunities for investors seeking potential value in small-cap stocks, especially those with insider activity that may indicate confidence amidst market fluctuations.
Name
PE
PS
Discount to Fair Value
Value Rating
Security Bank
4.3x
1.0x
41.19%
★★★★★★
East West Banking
3.2x
0.7x
31.80%
★★★★★☆
Lion Rock Group
5.0x
0.4x
49.93%
★★★★☆☆
Dicker Data
18.3x
0.6x
-13.21%
★★★★☆☆
Atturra
27.2x
1.1x
35.31%
★★★★☆☆
Sing Investments & Finance
7.4x
3.7x
38.39%
★★★★☆☆
PWR Holdings
33.4x
4.6x
26.45%
★★★☆☆☆
Pacific Textiles Holdings
12.4x
0.4x
42.65%
★★★☆☆☆
Charter Hall Long WALE REIT
NA
12.2x
21.72%
★★★☆☆☆
Ho Bee Land
12.2x
2.4x
45.31%
★★★☆☆☆
Click here to see the full list of 56 stocks from our Undervalued Asian Small Caps With Insider Buying screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Charter Hall Retail REIT is a real estate investment trust focused on investing in convenience and shopping centre retail properties, with a market cap of approximately A$2.49 billion.
Operations: Charter Hall Retail REIT generates revenue primarily from its Convenience Shopping Centre Retail segment, contributing A$223.6 million, and the Convenience Net Lease Retail segment, with A$52 million. The company's gross profit margin has shown variation over time, reaching 81.58% in September 2021 before decreasing to 61.49% by December 2023. Operating expenses have remained relatively low compared to revenue figures, while non-operating expenses have fluctuated significantly, impacting net income margins which turned negative by the end of 2023 but improved again in subsequent periods.
PE: 13.7x
Charter Hall Retail REIT, a small-cap entity in Asia, recently affirmed a dividend of A$0.12 for the six months ending June 2025, with payment slated for August 29. Insider confidence is evident with recent share purchases by executives. The company faces challenges as earnings are projected to decline by 0.3% annually over the next three years and relies solely on external borrowing for funding. However, new board member Paul Craig brings extensive property expertise that could bolster strategic direction amidst these hurdles.
Unlock comprehensive insights into our analysis of Charter Hall Retail REIT stock in this valuation report.
Gain insights into Charter Hall Retail REIT's past trends and performance with our Past report.
Simply Wall St Value Rating: ★★★☆☆☆
Overview: MREIT is a real estate investment trust focused on leasing its buildings, with a market capitalization of ₱50.47 billion.
Operations: The primary revenue stream is derived from leasing its buildings, contributing significantly to the company's income. Over recent periods, gross profit margin has shown variability, with a notable figure of 73.74% in early 2025. Operating expenses have been substantial but are offset by non-operating financial activities that impact net income outcomes.
PE: 12.2x
MREIT, a smaller player in the Asian market, is catching attention with its recent financial performance and insider confidence. For Q1 2025, they reported sales of PHP 1.02 billion and net income of PHP 963 million, showing significant growth from the previous year. The company has not diluted shareholders over the past year despite relying on external borrowing for funding. Recent executive changes bring Jose Arnulfo C. Batac as CEO from June 2025, potentially steering MREIT towards sustainable development initiatives within Megaworld's broader framework.
Dive into the specifics of MREIT here with our thorough valuation report.
Explore historical data to track MREIT's performance over time in our Past section.
Simply Wall St Value Rating: ★★★★☆☆
Overview: Spring Real Estate Investment Trust focuses on property investment, managing a portfolio of commercial properties with a market capitalization of around CN¥1.62 billion.
Operations: Spring Real Estate Investment Trust primarily generates revenue from property investment, with recent figures indicating a revenue of CN¥702.47 million. The company's cost of goods sold (COGS) stands at CN¥171.19 million, resulting in a gross profit margin of 75.63%. Operating expenses are reported at CN¥80.01 million, and non-operating expenses amount to CN¥497.89 million, impacting the net income significantly as reflected in the negative net income margin of -6.64%.
PE: -48.9x
Spring Real Estate Investment Trust is navigating the small company landscape with a focus on enhancing shareholder value through strategic share repurchases. As of June 19, 2025, they initiated a buyback program authorized to cover up to 10% of its issued shares, potentially boosting net asset value and earnings per unit. Despite challenges like declining earnings over the past five years and reliance on external borrowing, the company's insider confidence reflects potential for future growth in this dynamic sector.
Take a closer look at Spring Real Estate Investment Trust's potential here in our valuation report.
Examine Spring Real Estate Investment Trust's past performance report to understand how it has performed in the past.
Click through to start exploring the rest of the 53 Undervalued Asian Small Caps With Insider Buying now.
Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASX:CQR PSE:MREIT and SEHK:1426.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Magazine
an hour ago
- Time Magazine
China's Relationship With the World After the Israel-Iran War
Donald Trump's leadership style, at once volatile and commanding, could be both an obstacle and an opportunity for Beijing. There might be no better example than the recent events involving the Middle East: After nearly two weeks of traded attacks between Israel and Iran, the President made the controversial decision to authorize U.S. strikes on three Iranian nuclear facilities, risking prolonged American involvement in yet another unpopular war in the Middle East. Then just two days later, Trump announced that he had brokered a ceasefire between Israel and Iran—one that almost collapsed but then appeared to hold as Trump let off an expletive-filled rant against both countries, warning Israel not to drop more bombs. Trump even boasted of the benefits his truce would bring to other countries. 'China can now continue to purchase Oil from Iran,' Trump posted on Truth Social on Tuesday. 'Hopefully, they will be purchasing plenty from the U.S., also. It was my Great Honor to make this happen!' Trump's comments came after Secretary of State Marco Rubio said on Fox News on Sunday that he had encouraged China to advise Iran not to close the Strait of Hormuz—the narrow waterway through which much of the world's oil trade flows through and which Iran had threatened to close in response to U.S. intervention. China relies on crude oil imports from the Middle East, particularly Saudi Arabia, which pass through the strait, but is also the largest importer of Iranian oil, which is under economic sanctions by the U.S. Reports suggested that Trump's post indicated possible sanctions relief, but the White House later clarified to media outlets: 'The president was simply calling attention to the fact that, because of his decisive actions to obliterate Iran's nuclear facilities and broker a ceasefire between Israel and Iran, the Strait of Hormuz will not be impacted, which would have been devastating for China.' China, unlike the U.S. with Israel, made no indication that it would step in to militarily assist its longtime friend Iran. Instead, the Asian nation, which has in recent years tried to position itself as a global peacebroker, made fervent calls for deescalation, verbal condemnations of Israel's attacks, and urged the U.S. not to get involved. Ultimately, though, China's offers to mediate were not taken up, and instead it was—at least according to himself—Trump's strongman stance that managed to bring an end for now to the hostilities between Israel and Iran. But experts tell TIME it was no surprise to anyone, including China, that only the U.S. could have brought an end to the war. 'It is not surprising that Israel signs a cease-fire when the United States applies real pressure, because they could not pursue any conflict, in Iran or in Gaza, without the continual supply of weapons, ammunition, and military tech from the United States,' says William Figueroa, an assistant professor of international relations at the University of Groningen. 'When the person signing the checks says they really mean it, you listen.' While China has deepened its investment in the Middle East over the years and developed close economic ties with Iran while maintaining ties with Israel, it does not hold the same level of either economic or political leverage over either country as the U.S. 'Iran sees China more as an economic partner than a security ally,' Lin Jing, a research fellow at the Middle East Institute at the National University of Singapore, tells TIME. China has also offered sharp criticisms of Israel's bombardment of Gaza, and of its attacks on Iran, which would have made it unlikely for Israel to accept it as a mediator. China seemed to know this, Figueroa says, and was instead pushing the U.S. to exert its influence over Israel to end the war. Still, experts say, China will learn from how the war and its ceasefire played out, if only to reinforce its view of the U.S. as an unpredictable power. And Rubio will meet next week with foreign ministers from Australia, India, and Japan to build on 'momentum to advance a free, open, and secure Indo-Pacific'—language that suggests the U.S. wants to return focus to countering the regional threat from China. Strikes reinforce Chinese view of U.S. instability China already saw the U.S. under the Trump Administration as an unstable partner, particularly after Trump slammed the world with staggering tariff rates before abruptly reversing course. Trump's tariffs 'were accelerating a trend of Chinese businesses looking more and more overseas,' Figueroa says. China exports heavily to U.S. markets, and Trump's tariffs on China—which rose to a prohibitive 145% before being temporarily lowered to 30%—left many Chinese and American businesses in a state of uncertainty. Chinese President Xi Jinping has made attempts to strengthen trade relations with other countries in recent months, assuring the world of its stability as a trading partner in contrast with the U.S. In a meeting with Singaporean Prime Minister Lawrence Wong this week, Xi pointed to 'the current complex and turbulent international situation' to emphasize the need for closer ties. The Middle East too has become an important market and site of diplomacy for China. Figueroa says U.S. backing of Israel 'will only intensify the trend of China leaning towards the Arab states and linking regional instability to the United States and Israel.' That the U.S. intervened to strike Iranian nuclear facilities, potentially upending decades of global nuclear diplomacy, 'reinforces [China's] view of the U.S. as a disruptive power, intent on setting rules, but not following them when inconvenient,' Lin says. Isaac Kardon, a senior fellow for China studies at the Carnegie Endowment for International Peace, told the South China Morning Post that the U.S. strikes on Iran might ring alarm bells for China. American escalation showed China that 'massive use of force actually is 'on the table' and may be employed very quickly and even impulsively by a leader who is showing himself to be less gun-shy and more risk-acceptant than his first term,' Kardon said. China's approach to the Israel-Iran war showed that it wanted to 'avoid direct confrontation with the U.S.,' Lin, the Singapore-based researcher, adds. While China urged 'countries with special influence on Israel' not to fan the flames of the war, it did not explicitly name the U.S. But having seen that the U.S. is willing to engage militarily, China may recalculate its own foreign policy approach, including over Taiwan, Lin says. 'China may also look a bit more skeptically at Trump's efforts to negotiate, having seen where negotiations got Iran,' Figueroa says. At the same time, Lin says protracted U.S. involvement in the Middle East, which may result as the U.S. aims to enforce the ceasefire between Tehran and Tel Aviv while reentering diplomatic talks with Iran and pushing Israel to end its war in Gaza, could advantage China 'by drawing its attention away from Asia.' 'U.S. power is finite—political bandwidth and strategic bandwidth is also limited,' Mohammed Alsudairi, an international relations lecturer at the Australian National University, told the Washington Post. 'The U.S. could be dragged into a quagmire, not of its own making.' And Beijing would support such a quagmire, Kardon told SCMP, as it would 'keep U.S. naval and air forces tied up in Western Asia instead of in the Western Pacific where China's strategic attention is concentrated.' Uncertainty around Taiwan Tensions around Taiwan have been on the rise in recent years. Beijing views Taiwan as part of China and has stepped up political and military pressure towards its reunification with mainland China. A majority of countries do not recognize Taiwan as an independent country, including the U.S., although the U.S. opposes the use of force by Beijing to claim Taiwan and provides Taiwan with defensive military capabilities. Taiwan's Defense Minister Wellington Koo said Thursday that the island is determined to defend itself, after outlining annual military exercises for July. The defense ministry reported earlier that day another Chinese 'joint combat readiness patrol' around Taiwan, involving warships and warplanes. China previously sent 46 military aircraft over the Taiwan Strait in the 24 hours before last Friday morning, according to Taiwan's defense ministry, after U.S. lawmakers met with Koo in a rare publicly disclosed meeting. On the morning of June 20, Taiwan detected a spike in Chinese movements near the island, after China criticized a British navy vessel patrolling the Taiwan Strait for the first time since 2021. 'No matter what they say or do, they cannot change the fact that Taiwan is part of China,' Chinese foreign ministry spokesperson Guo Jiakun said. China's defense ministry said on Thursday that its military drills are 'necessary to defend national sovereignty and territorial integrity, and a stern warning to 'Taiwan independence' separatists and external interference.' The ministry added that U.S. support of Taiwan could 'mislead Taiwan into the flames of war.' Qi Dongtao, a senior research fellow at the East Asian Institute at the National University of Singapore, tells TIME that Trump's approach to China makes it difficult to know whether the U.S. would militarily intervene to defend Taiwan. Former President Joe Biden moved the U.S. from 'strategic ambiguity'—the policy of deliberately not clarifying whether the U.S. would militarily defend Taiwan—to 'strategic clarity,' Qi says. On multiple occasions, including in an interview with TIME last year, Biden said he wouldn't rule out 'using military force' to defend Taiwan in the case of an invasion. But Trump has moved the U.S. position back towards uncertainty. Trump is, by and large, 'not ideologically driven,' Qi says. Rather, his approach is 'transactional.' Trump Administration officials have also demanded that Taiwan increase its defense spending to as much as 10% of its gross domestic product, as part of an overall push for the U.S.' partners to spend more on their own defenses. Alexander Gray, a senior fellow at the Atlantic Council and former chief of staff of the National Security Council during Trump's first term, told Nikkei Asia that Israel's aerial campaign was 'the ultimate example of America First regional burden sharing'—signalling that the Trump Administration expects its regional partners to do a bulk of the fighting. 'For Trump, China is mainly an economic threat,' Qi adds. For the most part, 'Trump doesn't want to fight a war with China.' World still views China as a security concern NATO Secretary-General Mark Rutte said Monday that NATO's Indo-Pacific partners—which includes Japan and South Korea—were 'very, very aware' of China's 'massive' military expansion, pointing to several Chinese defense companies that rank among the top arms makers globally. He warned that Chinese military expansion could also impact European security. 'They don't do this only because they want to have nice parades in Beijing. I guess it's there for a reason,' Rutte said. He pointed to 'the situation in Taiwan' and cautioned that should China 'try anything with Taiwan,' Beijing could rely on Russia to 'keep us busy here' in Europe. Rutte's comments signal that the West still views China mainly as a geopolitical security threat, even as Beijing tries to warm ties with Europe. 'We firmly oppose NATO using China as an excuse to expand eastward into the Asia-Pacific and urge NATO to reflect on its own behaviors, change course, and contribute more to global security and stability,' Chinese defense spokesperson Senior Colonel Zhang Xiaogang said at a regular press conference on Thursday. 'China wants to be seen as a neutral player,' Lin says. But the U.S. is still 'the dominant power in the region' and by most counts the world, whereas China is a 'relatively recent entry' diplomatically and economically to the Middle East. Even with some upgraded diplomatic ties in the Middle East, China is viewed mainly as an economic player, Lin adds. That informs China's need to balance its interests in and ties to several countries at once. If China were seen as 'too passive or too close to Iran,' for example, 'it could limit China's Belt and Road ambitions in the region.' With other nations too, China is seen as a major economic player, but taken with a grain of salt with regards to diplomacy. 'It is clear that China is one of the largest trading partners, and we have a few issues like climate change where we cooperate, but every relationship requires a dose of realism,' European Union foreign policy chief Kaja Kallas told reporters Monday after a meeting between E.U. foreign ministers. 'China is the key enabler of Russia's war against Ukraine. It carries out cyberattacks. It interferes in our democracies. It uses coercive trade practices. These aspects strain our relationship and make it increasingly hard to continue as before.' Even in the economic arena, China's relations have faltered. The E.U. earlier this month cancelled a flagship economic meeting with China over ongoing trade disputes. U.S. sanctions have spurred collaboration between China, Russia, Iran, and North Korea, including through setting up international collaborative organizations like BRICS as alternatives to a U.S.-led international order. But the global influence of these organizations is hampered by a lack of 'sufficient critical mass,' Stephen Olson, a visiting senior fellow at the ISEAS Yusof Ishak Institute, told Nikkei Asia. In another blow to China's push to become a regional leader, India on Thursday rejected signing a joint statement facilitated by the Shanghai Cooperation Organization—one such grouping set up by China and Russia to counter U.S. influence. Israel-Iran conflict was 'a stage' for U.S. and China's contrasting approaches China's continued policy of non-involvement contrasts sharply with what the world has seen from the U.S. in the past week—not to mention decades of its interventionist approach before Trump—which has allowed China to make 'great strides particularly in the Global South,' Lin tells TIME. That's intentional, Lin says, lest China lets itself become 'indistinguishable from the hegemonic powers it criticizes.' 'This conflict between Iran and Israel has somehow become a stage for China and the U.S. to showcase contrasting visions of global leadership,' Lin says. 'The U.S. has demonstrated its military capabilities, its commitment to allies, and its influence in crisis management. But these are not the metrics by which China measures its global role.' Where the U.S. wielded threats and weapons, China offered words. 'China's main stake is stability,' Lin says. 'History shows that great power involvement often worsens long-term instability. China does not aspire to become a world policeman, nor does it believe any single country should assume that role.'
The Hill
5 hours ago
- The Hill
Asian shares are mostly higher after US stocks rise to the brink of a record
MANILA, Philippines (AP) — Asian were mostly higher on Friday after U.S. stocks ran up to the edge of another record. U.S. futures and oil prices also logged slight gains. Investors were watching for further details after President Donald Trump said the U.S. and China had signed a trade deal. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that the deal was signed two days ago, but he gave no details, saying 'The president likes to close these deals himself.' Worries about Trump's higher tariffs have receded since the president shocked the world in April with stiff proposed levies, but they have not disappeared. The wait is still on to see how big the tariffs will ultimately be, how much they will hurt the economy and how much they will push up inflation. Hong Kong's Hang Seng index was barely changed at 24,333.43, while the Shanghai Composite index lost 0.2% to 3,441.30. Tokyo's Nikkei 225 index surged 1.6% to 40,215.36 as the government reported that consumer prices eased slightly in May. South Korea's KOSPI Composite Index slid 0.7% to 3,050.01. Markets have settled somewhat after the upheavals of the Israel-Iran war and its aftermath. On Thursday, the S&P 500 climbed 0.8% to 6,141.02 and was sitting just 0.05% below its all-time closing high set in February. It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump's tariffs. The Dow Jones Industrial Average rallied 0.9% to 43,386.84, and the Nasdaq composite gained 1% to 20,167.91. Reports Thursday added to evidence the U.S. economy is holding up despite higher tariffs and other challenges, though it has slowed. Orders for washing machines and other manufactured goods that last at least three years grew by more last month than economists expected. Another report said fewer U.S. workers filed for unemployment benefits last week, a potential signal of fewer layoffs. A third report said the U.S. economy shrank by more during the first three months of 2025 than earlier estimated. But many economists say those numbers were distorted by a surge in imports as companies tried to get ahead of tariffs. They're expecting a better performance in upcoming months. Following the reports, Treasury yields swiveled up and down in the bond market before easing. The yield on the 10-year Treasury fell to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, fell to 3.71% from 3.74% late Wednesday. Analysts said yields may have felt pressure because of a report from The Wall Street Journal saying Trump could name his nominee to replace Fed Chair Jerome Powell unusually early, in an attempt to undermine him. That could hurt confidence among investors about the Fed's capability to make unpopular decisions when it comes to fighting inflation. On Wall Street, spices company McCormick jumped 5.3% after delivering a better-than-expected profit report and giving a full-year profit forecast that topped analysts' expectations, including planned efforts to offset increased costs caused by tariffs. Over the longer term, it's been big technology stocks that have led the market for years and since the S&P 500 hit a trough in April. Chip company Nvidia, which has been the poster child of the frenzy around artificial-intelligence technology, added 0.5%. It's the most valuable company in the U.S. stock market after rushing 61% higher since April 8, towering over the S&P 500's gain of 23%. Another AI darling, Super Micro Computer, rose 5.7% to bring its gain since April 8 to 55%. In other dealings early Friday, the U.S. benchmark crude gained 35 cents to $65.59 per barrel. Brent crude, the international standard, added 36 cents to $67.05 per barrel The U.S. dollar rose to 144.45 Japanese yen from 144.40 yen. The euro fell to $1.1699 from $1.1703. ___ AP Business Writer Stan Choe contributed.
Yahoo
7 hours ago
- Yahoo
Calculating The Fair Value Of BTM Resources Berhad (KLSE:BTM)
The projected fair value for BTM Resources Berhad is RM0.041 based on 2 Stage Free Cash Flow to Equity BTM Resources Berhad's RM0.04 share price indicates it is trading at similar levels as its fair value estimate BTM Resources Berhad's peers are currently trading at a premium of 113% on average In this article we are going to estimate the intrinsic value of BTM Resources Berhad (KLSE:BTM) by projecting its future cash flows and then discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM3.23m RM3.55m RM3.85m RM4.11m RM4.35m RM4.58m RM4.79m RM5.01m RM5.21m RM5.42m Growth Rate Estimate Source Est @ 12.97% Est @ 10.17% Est @ 8.21% Est @ 6.84% Est @ 5.88% Est @ 5.21% Est @ 4.74% Est @ 4.41% Est @ 4.18% Est @ 4.02% Present Value (MYR, Millions) Discounted @ 11% RM2.9 RM2.9 RM2.8 RM2.7 RM2.6 RM2.5 RM2.3 RM2.2 RM2.0 RM1.9 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM25m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 11%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM5.4m× (1 + 3.6%) ÷ (11%– 3.6%) = RM77m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM77m÷ ( 1 + 11%)10= RM27m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM52m. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of RM0.04, the company appears about fair value at a 3.1% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at BTM Resources Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 1.236. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for BTM Resources Berhad Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For BTM Resources Berhad, we've compiled three fundamental factors you should consider: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with BTM Resources Berhad (at least 3 which can't be ignored) , and understanding these should be part of your investment process. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
