PETRONAS Gas Berhad's (KLSE:PETGAS) Intrinsic Value May Be 21% Lower Than Current Share Price

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Nov 02 2025

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Source: Yahoo Finance

Valuation Overview: The fair value for PETRONAS Gas Berhad is estimated at RM14.66, indicating that the current share price of RM18.50 suggests a potential overvaluation of 26%.
Discounted Cash Flow Method: The analysis employs a Discounted Cash Flow (DCF) model, which estimates future cash flows and discounts them to present value, resulting in a total equity value of RM29 billion for the company.
Growth and Risks: While annual earnings are forecasted to grow over the next three years, the company faces risks such as declining earnings, low dividends compared to peers, and potential cash flow issues covering dividends.
Investment Considerations: The DCF model is one of many valuation methods, and investors should consider various factors, including risks, future earnings growth, and comparisons with other solid businesses before making investment decisions.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.