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Yahoo
6 days ago
- Business
- Yahoo
Calculating The Fair Value Of Only World Group Holdings Berhad (KLSE:OWG)
The projected fair value for Only World Group Holdings Berhad is RM0.18 based on 2 Stage Free Cash Flow to Equity Current share price of RM0.22 suggests Only World Group Holdings Berhad is potentially trading close to its fair value In this article we are going to estimate the intrinsic value of Only World Group Holdings Berhad (KLSE:OWG) by projecting its future cash flows and then discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Believe it or not, it's not too difficult to follow, as you'll see from our example! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. 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, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM14.7m RM12.4m RM11.2m RM10.6m RM10.3m RM10.2m RM10.2m RM10.4m RM10.6m RM10.9m Growth Rate Estimate Source Est @ -23.46% Est @ -15.33% Est @ -9.64% Est @ -5.65% Est @ -2.87% Est @ -0.91% Est @ 0.45% Est @ 1.41% Est @ 2.08% Est @ 2.55% Present Value (MYR, Millions) Discounted @ 15% RM12.8 RM9.4 RM7.4 RM6.1 RM5.2 RM4.5 RM3.9 RM3.5 RM3.1 RM2.8 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM59m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. 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 15%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM11m× (1 + 3.6%) ÷ (15%– 3.6%) = RM102m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM102m÷ ( 1 + 15%)10= RM26m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM85m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of RM0.2, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual 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 Only World Group Holdings 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 15%, which is based on a levered beta of 1.861. 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. Check out our latest analysis for Only World Group Holdings Berhad Strength Debt is well covered by cash flow. Dividend is in the top 25% of dividend payers in the market. Weakness Interest payments on debt are not well covered. Current share price is above our estimate of fair value. Opportunity Has sufficient cash runway for more than 3 years based on current free cash flows. Lack of analyst coverage makes it difficult to determine OWG's earnings prospects. Threat No apparent threats visible for OWG. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Only World Group Holdings Berhad, we've put together three further aspects you should further research: Risks: For example, we've discovered 2 warning signs for Only World Group Holdings Berhad (1 makes us a bit uncomfortable!) that you should be aware of before investing here. 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. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock 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. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Perusahaan Sadur Timah Malaysia (Perstima) Berhad Full Year 2025 Earnings: RM0.22 loss per share (vs RM0.28 loss in FY 2024)
Revenue: RM1.10b (up 20% from FY 2024). Net loss: RM28.6m (loss narrowed by 19% from FY 2024). RM0.22 loss per share (improved from RM0.28 loss in FY 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Perusahaan Sadur Timah Malaysia (Perstima) Berhad shares are down 4.7% from a week ago. Be aware that Perusahaan Sadur Timah Malaysia (Perstima) Berhad is showing 3 warning signs in our investment analysis and 2 of those are concerning... 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.
Yahoo
27-05-2025
- Business
- Yahoo
One HeveaBoard Berhad (KLSE:HEVEA) Analyst Has Been Cutting Their Forecasts
Market forces rained on the parade of HeveaBoard Berhad (KLSE:HEVEA) shareholders today, when the covering analyst downgraded their forecasts for this year. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Following this downgrade, HeveaBoard Berhad's single analyst are forecasting 2025 revenues to be RM321m, approximately in line with the last 12 months. Previously, the analyst had been modelling revenues of RM432m and earnings per share (EPS) of RM0.003 in 2025. Indeed, we can see that the analyst is a lot more bearish about HeveaBoard Berhad's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot. Check out our latest analysis for HeveaBoard Berhad Notably, the analyst has cut their price target 8.3% to RM0.22, suggesting concerns around HeveaBoard Berhad's valuation. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2025. Historically, HeveaBoard Berhad's sales have shrunk approximately 5.6% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. Although HeveaBoard Berhad's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry. The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for HeveaBoard Berhad. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that HeveaBoard Berhad's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of HeveaBoard Berhad's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on HeveaBoard Berhad after today. That said, this analyst might have good reason to be negative on HeveaBoard Berhad, given the risk of cutting its dividend. Learn more, and discover the 1 other risk we've identified, for free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. 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.
Yahoo
02-03-2025
- Business
- Yahoo
Analysts Have Been Trimming Their Able Global Berhad (KLSE:ABLEGLOB) Price Target After Its Latest Report
Able Global Berhad (KLSE:ABLEGLOB) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Able Global Berhad beat revenue expectations by 2.9%, at RM729m. Statutory earnings per share (EPS) came in at RM0.22, some 2.7% short of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. See our latest analysis for Able Global Berhad Following the latest results, Able Global Berhad's twin analysts are now forecasting revenues of RM748.7m in 2025. This would be a reasonable 2.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be RM0.23, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM747.1m and earnings per share (EPS) of RM0.21 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result. The average the analysts price target fell 12% to RM2.33, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Able Global Berhad's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 6.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Able Global Berhad is also expected to grow slower than other industry participants. The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Able Global Berhad following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Able Global Berhad's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Able Global Berhad's future valuation. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here. You can also see whether Able Global Berhad is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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. Sign in to access your portfolio
