As of 2025-05-16, the Fair Value of Teo Seng Capital Bhd (TEOSENG.KL) is 7.64 MYR. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1.03 MYR, the upside of Teo Seng Capital Bhd is 641.7%.

Is TEOSENG.KL a good investment?

With the market price of 1.03 MYR and our fair value calculation, Teo Seng Capital Bhd (TEOSENG.KL) is a good investment. Investing in TEOSENG.KL stocks now will result in a potential gain of 641.7%.

1.03 MYR

Stock Price

7.64 MYR

Fair Price

FAIR VALUE CALCULATION

TEOSENG.KL Fair Value

Peter Lynch's formula is:

TEOSENG.KL Fair Value

= Earnings Growth Rate x TTM EPS

TEOSENG.KL Fair Value

= 25 x 0.31

TEOSENG.KL Fair Value

= 7.64

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	4.19	3.04	21.64	155.8	183.36	74
YoY growth	-92.9%	-27.3%	611.1%	620%	17.7%	225.7%

TEOSENG.KL Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Teo Seng Capital Bhd	618	0.3	7.64	641.7%
Leong Hup International Bhd	2,337	0.1	2.94	358.8%
CCK Consolidated Holdings Bhd	877	0.1	2.96	112.8%
Ifuji Sangyo Co Ltd	16,516	251.9	6,296.4	218.3%
CAB Cakaran Corporation Bhd	463	0.1	0.46	-29.6%
Hokuryo Co Ltd	12,309	174.2	4,355.8	199.4%
Lay Hong Bhd	261	0.1	3.36	873.2%
PWF Corporation Bhd	261	0.1	2.31	181.6%
LTKM Bhd	173	0.4	1.88	55.2%
TPC Plus Bhd	105	0.1	0.3	-12.8%
Teck Guan Perdana Bhd	70	0.5	13.21	659.3%

TEOSENG.KL Fair Value - Key Data

Market Cap (mil)	618
P/E	3.4x
Forward P/E	3.7x

EPS	0.31
Avg earnings growth rate	225.7%
TTM earnings	183

TEOSENG.KL Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.