Latest news with #RM2.28
Yahoo
28-05-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of Apex Healthcare Berhad (KLSE:AHEALTH)
The projected fair value for Apex Healthcare Berhad is RM2.28 based on 2 Stage Free Cash Flow to Equity Current share price of RM2.12 suggests Apex Healthcare Berhad is potentially trading close to its fair value Our fair value estimate is 7.5% lower than Apex Healthcare Berhad's analyst price target of RM2.47 Does the May share price for Apex Healthcare Berhad (KLSE:AHEALTH) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. 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 still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate 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. Generally we assume that a dollar today is more valuable than a dollar in the future, 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) RM66.1m RM72.6m RM78.4m RM83.6m RM88.5m RM93.0m RM97.4m RM101.6m RM105.8m RM110.1m Growth Rate Estimate Source Est @ 12.54% Est @ 9.87% Est @ 8.00% Est @ 6.69% Est @ 5.78% Est @ 5.14% Est @ 4.69% Est @ 4.37% Est @ 4.15% Est @ 4.00% Present Value (MYR, Millions) Discounted @ 8.4% RM60.9 RM61.8 RM61.6 RM60.6 RM59.1 RM57.4 RM55.4 RM53.4 RM51.3 RM49.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM571m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM110m× (1 + 3.6%) ÷ (8.4%– 3.6%) = RM2.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM2.4b÷ ( 1 + 8.4%)10= RM1.1b 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 RM1.6b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of RM2.1, the company appears about fair value at a 7.2% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 Apex Healthcare 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 8.4%, which is based on a levered beta of 0.800. 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 Apex Healthcare Berhad Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Pharmaceuticals market. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Current share price is below our estimate of fair value. Threat Dividends are not covered by cash flow. Annual revenue is forecast to grow slower than the Malaysian market. 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 Apex Healthcare Berhad, we've compiled three relevant elements you should assess: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Apex Healthcare Berhad , and understanding them should be part of your investment process. Future Earnings: How does AHEALTH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. 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! 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
06-05-2025
- Business
- Free Malaysia Today
After 58 days, defence wraps up Najib's 1MDB case
Former prime minister Najib Razak is standing trial on 25 charges of abuse of power and money laundering over funds amounting to RM2.28 billion. PUTRAJAYA : Former prime minister Najib Razak's 1MDB defence in the High Court concluded today after 58 days of trial. Lawyer Shafee Abdullah told Justice Collin Lawrence Sequerah that the defence was wrapping up its case today, after calling its last witness, Tay Eue Kam. The hearing for the defence began on Dec 2 last year. A total of 26 witnesses were called, including former Goldman Sachs banker Roger Ng, former inspector-general of police Fuzi Harun and ex-1MDB chairman Lodin Wok Kamaruddin. Sequerah set Oct 21 to 31 to hear oral submissions from the defence and prosecution. 'The defence must file its written submissions by Sept 30 and the prosecution must file their replies by Oct 10,' he said. The prosecution's case had earlier taken up 235 days in the trial which began on Aug 28, 2019. Besides Shafee, Najib was also represented by lawyers Tania Scivetti and Wan Azwan Aiman Wan Fakhruddin. Deputy public prosecutors Kamal Baharin Omar, Ahmad Akram Gharib, Mustaffa P Kunyalam, T Deepa Nair and Nadia Izhar appeared for the prosecution. Najib is standing trial on 25 charges of abuse of power and money laundering over funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014.
Free Malaysia Today
05-05-2025
- Business
- Free Malaysia Today
Forensic examiner unable to verify Najib's signature on documents
Najib Razak is on trial for abuse of power and money laundering over funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014. (EPA Images) PUTRAJAYA : A forensic document examiner told the Najib Razak 1MDB trial today she could not determine the veracity of signatures on several company documents allegedly signed by the former prime minister. Tay Eue Kam said she only received photocopies of the documents, including the minutes of a meeting between 1MDB's board of advisers chairman (Najib) and then company CEO Shahrol Azral Ibrahim Halmi. She said that because the documents were only photocopies, she was unable to use a microscope or any other device to verify their authenticity. 'Several dissimilarities were identified. But, (to get) a definitive conclusion requires an examination of the original document,' she said. Asked by Najib's lawyer, Shafee Abdullah, whether the signatures could have been lifted from another document and pasted onto the documents she was analysing, Tay said she could not exclude the possibility. 'It was rather impossible to examine (whether the signatures were copied and pasted) with this quality (of photocopies),' she said. Najib is standing trial on 25 charges of abuse of power and money laundering over funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014. Earlier today, Shafee told the court the defence might call another witness from Bukit Aman before they close their case.
Free Malaysia Today
24-04-2025
- Business
- Free Malaysia Today
I have no pending charges in 1MDB bonds case, Roger Ng tells court
Convicted ex-Goldman Sachs banker Roger Ng returned to Malaysia in October 2023 to assist in police investigations into 1MDB-related matters. (AP pic) PUTRAJAYA : Former Goldman Sachs banker Roger Ng told Najib Razak's 1MDB trial today that he has yet to be charged in a local court over his alleged involvement in the issuance of 1MDB-related bonds since his return from the US. Ng acknowledged that he had only secured a discharge not amounting to an acquittal in respect of the four charges brought against him under Section 370(1)(c) of the Capital Markets and Services Act 2007. Ng was charged in the sessions court in 2018, but the case was later transferred to the High Court which granted the discharge on Jan 9, 2023. Ng was subsequently extradited to New York in 2019 to face corruption-related charges, and found guilty in April 2022. 'I wasn't present in court (when the discharge was issued), but that was what I learned from my counsel (here),' Ng added. Ng, who is testifying as a defence witness, told the court he was unsure if he would be charged again. He said his return to Malaysia in October 2023 was 'to assist in police investigations'. Ng told the court that the 10-year jail sentence for corruption imposed by a New York court had been suspended indefinitely to facilitate his return to Malaysia. I met Jho Low in 2009, Ng says In his testimony, Ng said that he knew fugitive businessman Low Taek Jho (Jho Low) in or around 2009 while working in Goldman Sachs's Singapore office. 'I don't remember if he approached me or otherwise. There were rumours (at the time) that the Terengganu government wanted to set up a sovereign wealth fund,' he added. He said he blamed Low, who was charged in absentia as a co-conspirator, at the hearing of his corruption case. Asked by lawyer Shafee Abdullah whether he had raised red flags to Goldman Sachs about Low, the former banker said he had. 'However, I want to highlight that there is a protective order by the New York court which limits what I can say about the documents (in the trial),' he added. Ng was allowed to leave the witness stand after deputy public prosecutor Ahmad Akram Gharib questioned the relevance of his evidence and told the court that the prosecution had no questions for him in cross-examination. The hearing continues before Justice Collin Lawrence Sequerah on May 5. Najib is standing trial on 25 charges of abuse of power and money laundering over funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014.
Free Malaysia Today
22-04-2025
- Business
- Free Malaysia Today
Law firm didn't handle 1MDB's US$1bil transfer to PetroSaudi, court told
Former prime minister Najib Razak is standing trial on 25 counts of money laundering and abuse of power over alleged 1MDB funds amounting to RM2.28 billion deposited into his AmBank accounts between February 2011 and December 2014. PUTRAJAYA : A former 1MDB lawyer told Najib Razak's trial that the law firm he was engaged in was not involved in managing the transfer of the company's funds pursuant to a 2009 joint venture entered with PetroSaudi International. Brian Chia said 1MDB had engaged Wong & Partners on Sept 16, 2009, to finalise the US$1 billion joint venture agreement. A draft agreement was prepared by a London law firm. 'All management of the funds, including dealings with the relevant banks and Bank Negara Malaysia, was undertaken by Shahrol (Azral Ibrahim Halmi) and Casey Tang,' Chia told the High Court. Shahrol was 1MDB's CEO at the time, while Tang was its executive director. Chia said he was only notified that a sum of US$300 million was deposited into 1MDB-PSI joint venture's account and that the remaining US$700 million was remitted into an account nominated by PetroSaudi International. He also confirmed that he wrote a memorandum highlighting the legal risk of entering into the joint venture. 'I gave my advice and they decided to pursue this joint venture on the basis that it was a government-to-government investment,' Chia said. The former lawyer said Shahrol was insisting that the joint venture agreement must be finalised and readied for signing by 1MDB and PetroSaudi on Sept 28, 2009. 'It was not for me to question (that decision). I had given my advice and warned them of the risk,' he said. Asked by deputy public prosecutor Ahmad Akram Gharib whether he knew that Shahrol was taking instructions from someone 'higher up', Chia said he was unaware. He told the court he knew Low Taek Jho (Jho Low), as his former firm had done legal work for the fugitive businessman in the past. However, he said he was unaware if Low was responsible for bringing Shahrol to work in 1MDB. Najib is standing trial on 25 charges of abuse of power and money laundering of RM2.28 billion in 1MDB funds deposited into his AmBank accounts between February 2011 and December 2014. The hearing continues before Justice Collin Lawrence Sequerah on April 23.
