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Alliance Bank Malaysia Berhad (2488) Fair Value & Analysis

Financial Services · MY · Market cap 8.3B MYR

AB Alliance Bank Malaysia Berhad 2488 · KLSE
Price4.79 MYR
Fair Value6.21 MYR
Upside+29.7%
Quality48/100
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Healthy Growth
Highly profitable · 36.7% net margin
Low debt · generates free cash flow
3.98% dividend yield
Ranks above peers (9/15)
Wide moat 68/100
Evidence: High Range 4.66 MYR – 7.76 MYR Share as image

Fair value as of: Jul 18, 2026

From 6 valuation models · updated 23 days ago

Share price +0.6% over the past month.

Below-average quality, screening 30% undervalued on our models.

What matters now

  • Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

5.42 MYR 1.74 MYR Fair Value 6.21 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range 1.74 MYR – 5.42 MYR · fair‑value band 4.66 MYR – 7.76 MYR · the 4.79 MYR price screens below the 6.21 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Alliance Bank Malaysia Berhad (2488) currently trades at 4.79 MYR, while our model-based Fair Value estimate is 6.21 MYR, implying the stock looks roughly 29.7% undervalued today. The Quality Score stands at 48/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Alliance Bank Malaysia Berhad generated revenue of 2.2B MYR at a net margin of 36.7%. Revenue grew 3.6% year over year. It earns a return on equity of 10.0%. Net debt stands at 3.0B MYR. Fundamentals as of Jul 18, 2026

Our scenario range runs from 4.66 MYR (bear case) to 7.76 MYR (bull case); at 4.79 MYR, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 17% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 30%, 2488 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 4.35 MYR 4.75 MYR 6.25 MYR 76
Gordon GGM 1.60 MYR 3.19 MYR 4.83 MYR 70
P/E Multiple 4.66 MYR 6.21 MYR 7.76 MYR 63
All 6 models by family
Dividend Discount
Gordon GGM 1.60 MYR 3.19 MYR 4.83 MYR 70
DDM Multi-Stage 1.60 MYR 2.65 MYR 3.37 MYR 61
Multiples
P/E Multiple 4.66 MYR 6.21 MYR 7.76 MYR 63
P/B Multiple 5.35 MYR 7.14 MYR 8.92 MYR 55
Asset-Based
NCAV (Graham) 2.55 MYR 3.42 MYR 5.10 MYR 50
Economic Profit
Residual Income 4.35 MYR 4.75 MYR 6.25 MYR 76

Widest divergence: Multiples (6.21 MYR) versus Dividend Discount (2.65 MYR). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.2B MYR
Revenue growth (YoY) +3.6%
Net margin 36.7%
Return on equity 10.0%
Free cash flow 1.0B MYR FY2026
P/E ratio 9.5
More key figures
Operating margin 49.0%
EPS (TTM) 0.4900 MYR
Dividend yield 4.1%
EPS growth (YoY) -6.6%
Net debt 3.0B MYR FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 45 · Market factors (momentum, volatility) 57

Profitability 31
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 93
Earnings quality: real cash, not paper profit
Fin. Strength 14
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 28
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Alliance Bank Malaysia Berhad provides banking and related financial services in Malaysia. The company operates through Consumer Banking, Business Banking, Financial Markets, and Others segments. It accepts savings, current, fixed/term deposit, foreign currency, employee, and business accounts.

Full company description

Alliance Bank Malaysia Berhad provides banking and related financial services in Malaysia. The company operates through Consumer Banking, Business Banking, Financial Markets, and Others segments. It accepts savings, current, fixed/term deposit, foreign currency, employee, and business accounts. The company also offers personal loans, mortgages, and margin and portfolio financing services; business loans, such as equipment, general working capital, business premises, bridging, trade, and palm oil plantation financing, as well as SME express loans; and government assistance schemes. In addition, it provides credit and debit cards; unit trust, dual currency, retail securities, and structured investment products, as well as retail bonds; share trading accounts and services; share and portfolio financing accounts; bancassurance products; and life, general, commercial, and family takaful insurance products. Further, the company offers corporate advisory services, such as initial public offering, equity and debt fund raising, mergers, takeovers and acquisitions, corporate rationalization and restructuring, independent advice, transfer of listing, and other services; commercial papers and medium-term notes; and equity syndication services. Additionally, it provides Islamic banking; term loans, hire purchase facilities, and wealth management services; cash management services; treasury and structured solutions; foreign exchange, money market, and hedging and investment solutions; trustee services; stockbroking and corporate advisory services; and online and mobile banking services. The company was incorporated in 1982 and is based in Kuala Lumpur, Malaysia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Alliance Bank Malaysia Berhad reported revenue of 4.2B MYR in FY2026 versus 2.4B MYR in FY2022, a compound +14.5%/yr. Reported net income was 827M MYR in FY2026, compounding +9.6%/yr from FY2022.

Growth Quality 86/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
4.2B MYR
Latest YoY
+13.6%
Avg. growth/yr (3Y)
+16.2%
Avg. growth/yr (5Y)
+10.0%
Avg. growth/yr (20Y)
+6.0%
Revenue +14.5%/yr
FY22 2.4B MYR
FY23 2.7B MYR
FY24 3.2B MYR
FY25 3.7B MYR
FY26 4.2B MYR
Net income +9.6%/yr
FY22 573M MYR
FY23 678M MYR
FY24 690M MYR
FY25 751M MYR
FY26 827M MYR

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Cite: Fair Value Calculator (2026). "Alliance Bank Malaysia Berhad Fair Value". https://www.fairvalue-calculator.com/stock/2488

Peer Group

Banks - Regional · 1083 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside +30% · Above median
Return on equity (TTM) 10% · Below median
Return on assets 1% · Below median
Net margin (TTM) 37% · Above median
Operating margin (TTM) 49% · Above median
Revenue growth 4% · Below median
Dividend yield (TTM) 4.0% · Top 25%
Debt / equity 0.37× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.8× · Cheaper than median
P/B 0.23× · Cheaper than 75% of peers
P/S (TTM) 0.91× · Cheaper than 75% of peers
P/FCF 2.0× · Cheaper than median
EV/EBITDA 1.3× · Cheaper than 75% of peers
PEG 1.75× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 73 · sector 39
FUTURE 18 · sector 44
PAST 40 · sector 41
HEALTH 81 · sector 85
DIVIDEND 80 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Alliance Bank Malaysia Berhad (2488) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 6.21 MYR versus a price of 4.79 MYR, about +30% (undervalued).
What is the fair value of 2488?
Our model-based fair value for Alliance Bank Malaysia Berhad is 6.21 MYR (as of Jul 18, 2026), built from audited fundamentals. The current price is 4.79 MYR.
What is the quality score of 2488?
Alliance Bank Malaysia Berhad has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Alliance Bank Malaysia Berhad (2488)?
Alliance Bank Malaysia Berhad reported trailing-twelve-month revenue of about 2.2B MYR (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 2488?
The net profit margin of Alliance Bank Malaysia Berhad is about 36.7%, meaning it keeps roughly 36.7% of revenue as net income. Based on the latest reported figures.
Does Alliance Bank Malaysia Berhad pay a dividend?
Alliance Bank Malaysia Berhad currently shows a dividend yield of about 4.09% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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