Public Bank Berhad Share Price Valuation and Investment Insights

Public Bank Berhad's share price is influenced by its strong financial performance, with a net profit of RM3.43 billion in 2020, a 6% increase from the previous year.

The bank's impressive financials are a result of its diversified business model, which includes consumer and corporate banking, as well as investment banking and stockbroking services.

Public Bank Berhad's dividend payout ratio is around 40%, indicating a commitment to returning value to shareholders.

Its stable dividend payments have made it a favorite among income-seeking investors.

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Public Bank Berhad's financial performance has been impressive, with a revenue of RM 6,809,005 in the third quarter of 2024, marking a significant increase from the previous quarter.

The bank's revenue has consistently grown over the past year, with a peak of RM 6,794,723 in the first quarter of 2024.

In terms of profitability, Public Bank Berhad has reported a profit after tax of RM 1,911,818 in the third quarter of 2024, which is a notable improvement from the previous quarter.

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Here's a breakdown of the bank's financial performance over the past few quarters:

The bank's earnings per share (EPS) have also been on the rise, with a peak of 9.85 in the third quarter of 2024.

Public Bank Berhad's financial performance has been strong, with consistent revenue growth and improved profitability over the past year.

Public Bank Berhad's share price is a topic of interest for many investors. The company's intrinsic value under the Base Case scenario is 5.29MYR, which is undervalued by 15% compared to its current market price of 4.51 MYR.

The fair price of PBBANK is estimated to be around 4.68 MYR, which is significantly higher than its current market price. This suggests that the company is trading below its fair value.

PBBANK's Price-To-Earnings (PE) Ratio is 12.7x, which is considered expensive compared to the Asian Banks industry average of 9x.

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PBBANK's price has been relatively stable in the past 3 months compared to the MY market.

PBBANK's weekly volatility has been stable at 3% over the past year.

The banks industry average movement is lower at 2.0%, indicating that PBBANK's price is not significantly more volatile than its peers.

In comparison, the 10% least volatile stocks in the MY market have an average movement of 2.4%, showing that PBBANK's price is not exceptionally stable.

Here's a comparison of PBBANK's volatility with the market and industry averages:

Intrinsic value is a crucial concept in valuation, and it's calculated as the average of Discounted Cash Flow (DCF) and Relative values.

Public Bank Bhd has an intrinsic value of 5.29MYR under the Base Case scenario, which is significantly higher than its current market price of 4.51 MYR. This indicates that Public Bank Bhd is undervalued by 15%.

The intrinsic value is a more comprehensive measure of a stock's true worth, taking into account various factors such as future cash flows and earnings. It provides a more accurate picture of a stock's value compared to its current market price.

Here's a summary of the intrinsic value calculation:

Note: The exact values may vary slightly depending on the specific calculation method used. However, the general idea is to calculate the intrinsic value as the average of DCF and Relative values.

Analysts are optimistic about Public Bank Berhad's share price, with an average 1-year price target of 5.3 MYR. This is a notable increase from the current share price of 4.54 MYR, indicating a potential growth of around 16.7%.

The analyst forecast suggests that the target price is less than 20% higher than the current share price, which is a reasonable expectation given the bank's financial performance.

According to the analyst consensus, the low forecast for PBBANK is 4.44 MYR, while the high forecast is 5.88 MYR. This range gives an idea of the potential volatility in the share price over the next year.

Here's a summary of the analyst consensus:

It's worth noting that the dispersion in the analyst consensus is relatively low, with a 5.6% difference between the high and low forecasts. This suggests that the analysts are fairly confident in their predictions.

Public Bank Berhad has a rich history dating back to 1966 when it was established as a private bank by Tan Sri Teh Hong Piow.

The bank's first branch was opened in Kuala Lumpur, and it quickly expanded to other parts of Malaysia.

Public Bank Berhad went public in 1967, listing on the Kuala Lumpur Stock Exchange.

Today, the bank has grown to become one of the largest banks in Malaysia, with a network of over 250 branches.

Public Bank Berhad has a strong presence in the Malaysian market, with a customer base of over 10 million.

The bank has also expanded its operations to other countries, including Cambodia and Vietnam.