Latest news with #RM2.47
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
Malay Mail
23-04-2025
- Health
- Malay Mail
‘Painful decision': WHO announces major overhaul, layoffs amid US funding cuts
GENEVA, April 22 — The World Health Organization chief acknowledged yesterday that US funding cuts had left the UN agency with a huge budget gap, forcing it to slash operations and lay off staff. 'The sudden drop in income has left us with a large salary gap and no choice but to reduce the scale of our work and workforce,' Tedros Adhanom Ghebreyesus told member states, according to a transcript of his opening remarks. The United Nations health agency has been bracing for the planned full withdrawal of the United States — traditionally its largest donor by far — next January. US President Donald Trump's administration has meanwhile also refused to pay agreed membership fees — called assessed contributions — for 2024 and 2025, even as it has frozen virtually all US foreign aid, including vast assistance to health projects worldwide. A number of other countries have also been reducing their foreign aid spending. Faced with this situation, the WHO has been reflecting on a new organisational structure, which Tedros presented to staff and member states yesterday. 'The refusal of the US to pay its assessed contributions for 2024 and 2025, combined with reductions in official development assistance by some other countries, means we are facing a salary gap for the 2026–27 biennium of between $560 (RM2.47 billion) and $650 million,' he acknowledged. The lower end of that spectrum 'represents about 25 per cent of staff costs' currently, he said, stressing though that 'that doesn't necessarily mean a 25 per cent cut to the number of positions'. He did not say how many jobs would be lost, but said the most significant impact was expected to be felt at the organisation's headquarters in Geneva, and 'we are starting with reductions in senior management'. 'We are reducing the senior leadership team at headquarters from 12 to seven, and the number of departments will be reduced by (more than) half, from 76 to 34,' Tedros said. 'These are very painful decisions for all of us.' — AFP
Yahoo
24-03-2025
- Business
- Yahoo
Is Now An Opportune Moment To Examine Hume Cement Industries Berhad (KLSE:HUMEIND)?
Hume Cement Industries Berhad (KLSE:HUMEIND), is not the largest company out there, but it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM3.19 at one point, and dropping to the lows of RM2.47. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hume Cement Industries Berhad's current trading price of RM2.66 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Hume Cement Industries Berhad's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 8.28x is currently trading slightly below its industry peers' ratio of 10.12x, which means if you buy Hume Cement Industries Berhad today, you'd be paying a reasonable price for it. And if you believe that Hume Cement Industries Berhad should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. In addition to this, it seems like Hume Cement Industries Berhad's share price is quite stable, which could mean there may be less chances to buy low in the future now that it's trading around the price multiples of other industry peers. This is because the stock is less volatile than the wider market given its low beta. View our latest analysis for Hume Cement Industries Berhad Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Hume Cement Industries Berhad, it is expected to deliver a relatively unexciting earnings growth of 6.6%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term. Are you a shareholder? HUMEIND's future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at HUMEIND? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on HUMEIND, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it's worth diving deeper into other factors in order to take advantage of the next price drop. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for Hume Cement Industries Berhad you should be aware of. If you are no longer interested in Hume Cement Industries Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
24-03-2025
- Business
- Yahoo
Is Now An Opportune Moment To Examine Hume Cement Industries Berhad (KLSE:HUMEIND)?
Hume Cement Industries Berhad (KLSE:HUMEIND), is not the largest company out there, but it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM3.19 at one point, and dropping to the lows of RM2.47. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hume Cement Industries Berhad's current trading price of RM2.66 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Hume Cement Industries Berhad's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 8.28x is currently trading slightly below its industry peers' ratio of 10.12x, which means if you buy Hume Cement Industries Berhad today, you'd be paying a reasonable price for it. And if you believe that Hume Cement Industries Berhad should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. In addition to this, it seems like Hume Cement Industries Berhad's share price is quite stable, which could mean there may be less chances to buy low in the future now that it's trading around the price multiples of other industry peers. This is because the stock is less volatile than the wider market given its low beta. View our latest analysis for Hume Cement Industries Berhad Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Hume Cement Industries Berhad, it is expected to deliver a relatively unexciting earnings growth of 6.6%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term. Are you a shareholder? HUMEIND's future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at HUMEIND? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on HUMEIND, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it's worth diving deeper into other factors in order to take advantage of the next price drop. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for Hume Cement Industries Berhad you should be aware of. If you are no longer interested in Hume Cement Industries Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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.
