Velesto Energy Bhd (5243) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Velesto Energy Bhd MYR 0.35, price MYR 0.23, upside +52.2%, quality 64 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Velesto Energy Berhad, an investment holding company, engages in activities in the upstream sector of the oil and gas industry in Malaysia and internationally. It operates through two segments: Drilling Services and Others.
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Velesto Energy Berhad, an investment holding company, engages in activities in the upstream sector of the oil and gas industry in Malaysia and internationally. It operates through two segments: Drilling Services and Others. The Drilling Services segment owns and operates a fleet of six premium jack-up drilling rigs capable of operating at water depths up to 400 feet, and drilling operations, well intervention, rejuvenation, repair, abandonment, and decommissioning services for exploration, development, and production wells. The Others segment provides oilfield services, including threading, inspection, and repair of Oil Country Tubular Goods, as well as specialised training and competency development programmes. The company also hydraulic workover units; operations and other engineering services for oil and gas exploration, development; and training and courses in relation to oil and gas drilling activities. In addition, it engages in the ownership and leasing of rigs. The company was formerly known as UMW Oil & Gas Corporation Berhad and changed its name to Velesto Energy Berhad in May 2018. Velesto Energy Berhad was founded in 1988 and is headquartered in Kuala Lumpur, Malaysia.
Stock analysis
Velesto Energy Bhd (5243) currently trades at 0.2300 MYR, while our model-based Fair Value estimate is 0.3500 MYR, implying the stock looks roughly 34.3% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of 0.4300 MYR per share, and 22 of the 26 models we run sit above the 0.2300 MYR price.
Bear case: the Asset-Based group reads lowest at 0.1900 MYR, and 4 of the 26 models stay below the price. Evidence for this calculation is low.
Scenario range: 0.2600 MYR (bear) to 0.4500 MYR (bull), the price of 0.2300 MYR sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Energy sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Velesto Energy Bhd reported revenue of 899M MYR in FY2025 versus 378M MYR in FY2021, a compound +24.2%/yr. Reported net income was 202M MYR in FY2025.
Key figures
Market cap 2.2B MYR (≈ $537M) · P/E ratio 11.5 · P/S ratio 2.59 · EPS (TTM) 0.0200 MYR · Dividend yield 13.0% · Net margin 22.5% · Return on equity 7.1% · Return on assets (EBIT) 3.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 33% below its 52-week high and 9% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Energy peers we cover trades at 3% fair-value upside, at 52%, 5243 screens cheaper than that median.
Fair Value models
Bear 0.2600 MYRFair Value 0.3500 MYRBull 0.4500 MYR
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
−33.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.4%
Start year 2020 (pandemic). Over 10 years: +0.7% a year
Revenue growth 15 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.5%
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What shareholders gained per year (last 5 years), in MYR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in MYR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+56.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+43.5%
Dividend (yield on the price)13.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.44% vs −14%, picking up
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 27%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 10.3%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−5.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−2.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (Malaysia: IMF forecast 2.0% a year to 2030, 1.8% from 2016 to 2025) that is about −7.1% a year for the price and −4.2% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Oil & Gas Drilling · 34 stocks
Beats the industry median on 12/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside+52% · Above median
Profitability
Return on equity (TTM)7% · Above median
Return on assets4% · Above median
Net margin (TTM)21% · Top 25%
Operating margin (TTM)20% · Above median
Growth and dividend
Revenue growth−18% · Bottom 25%
Dividend yield (TTM)13.0% · Top 25%
Valuation Multiplesvs Oil & Gas Drilling median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Velesto Energy Bhd Fair Value". https://www.fairvalue-calculator.com/stock/5243
Frequently asked questions
Is Velesto Energy Bhd (5243) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of 0.3500 MYR versus a price of 0.2300 MYR, about +52% upside (undervalued).
What is the fair value of 5243?
Our model-based fair value for Velesto Energy Bhd is 0.3500 MYR (as of Sep 23, 2026), built from audited fundamentals. The current price: 0.2300 MYR.
What is the quality score of 5243?
Velesto Energy Bhd has a Quality Score of 64/100. 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 price target for Velesto Energy Bhd (5243)?
Our model-based price target is the fair value of 0.3500 MYR (as of Sep 23, 2026) from 26 valuation models. Cautious scenario 0.2600 MYR, optimistic scenario 0.4500 MYR. It is a calculation from audited fundamentals, not an analyst target.
What is the Velesto Energy Bhd stock forecast for 2026?
Our models put fair value at 0.3500 MYR, about +52% upside versus a price of 0.2300 MYR (undervalued). Cautious scenario 0.2600 MYR, optimistic scenario 0.4500 MYR. The calculation is refreshed regularly with new filings.
What is the revenue of Velesto Energy Bhd (5243)?
Velesto Energy Bhd reported trailing-twelve-month revenue of about 852M MYR (latest available figure, as of Sep 23, 2026).
Does Velesto Energy Bhd pay a dividend?
Velesto Energy Bhd currently shows a dividend yield of about 13.04% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Velesto Energy Bhd (5243)?
For today's price to be fair in a discounted-cash-flow model, Velesto Energy Bhd would have to grow free cash flow by -5.3 % per year for five years (discount rate 11.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.4 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of 5243 use?
Our models discount Velesto Energy Bhd at 11.1 %: a base by market capitalisation (small), damped by beta 0.43, country premium for Malaysia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Velesto Energy Bhd that is -5.3 % per year a year over ten years, using the same discount rate (11.1 %) and the same formula as our fair value.
How much growth has Velesto Energy Bhd (5243) delivered so far?
Over the past 5 years revenue at Velesto Energy Bhd grew +10.4 % a year. The price currently implies -5.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Velesto Energy Bhd (5243) growing?
The median revenue growth in the sector is +1.8 % a year. That is the yardstick for the growth priced into Velesto Energy Bhd (-5.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Velesto Energy Bhd (5243)?
The free-cash-flow yield on the price is 12.13 %: that much free cash flow Velesto Energy Bhd produces per unit of market value. When it exceeds the discount rate of our models (11.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Velesto Energy Bhd (5243)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Velesto Energy Bhd it is 0.3500 MYR per share (as of Sep 23, 2026), against a price of 0.2300 MYR. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Velesto Energy Bhd stock overvalued or undervalued in 2026?
As of Sep 23, 2026, 5243 trades below its calculated fair value: price 0.2300 MYR, fair value 0.3500 MYR, a gap of about +52% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 5243?
No. The price is what the market pays today (0.2300 MYR); the fair value is what the company's own numbers justify (0.3500 MYR). For Velesto Energy Bhd the two are 0.1200 MYR per share apart. That gap is exactly why we show both numbers side by side.
How much is Velesto Energy Bhd worth?
The market values Velesto Energy Bhd at about 2.2B MYR (market capitalisation, as of Sep 23, 2026). Per share that is 0.2300 MYR; our models calculate a fair value of 0.3500 MYR per share.
What do the bullish and bearish scenarios say about 5243?
Our models span a range for Velesto Energy Bhd: cautious scenario 0.2600 MYR, base 0.3500 MYR, optimistic 0.4500 MYR per share (as of Sep 23, 2026, price 0.2300 MYR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 5243?
Velesto Energy Bhd trades at a price-to-earnings ratio of 11.5 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 0.3500 MYR is built from several models across several years. Other multiples: PEG 27.5, P/B 0.2, P/S 0.6, EV/EBITDA 0.7.
What is the PEG ratio of 5243?
The PEG ratio of Velesto Energy Bhd is 27.45 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Velesto Energy Bhd (5243)?
Balance-sheet figures for Velesto Energy Bhd (as of Sep 23, 2026): return on equity 7.1%. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is 5243 from its 52-week high?
Velesto Energy Bhd trades at 0.2300 MYR, about 33% below its 52-week high of 0.3450 MYR and 9% above the low of 0.2107 MYR (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of 0.3500 MYR is for.
Which stocks are comparable to Velesto Energy Bhd?
From the same area (Energy) we also value Noble Corporation, Sinopec Oilfield Service Corporation, Transocean Ltd, Valaris Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Velesto Energy Bhd stock attractive at the current price?
The data as of Sep 23, 2026: price 0.2300 MYR, calculated fair value 0.3500 MYR (+52%), Quality Score 64/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 5243 calculated?
We run Velesto Energy Bhd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 0.3500 MYR, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Velesto Energy Bhd currently trades 52 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Velesto Energy Bhd (5243)?
The closing price on Sep 23, 2026 was 0.2300 MYR. Our model-based fair value is 0.3500 MYR, about +52% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Velesto Energy Bhd right now?
The price is below even our cautious bear case (0.2600 MYR). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Velesto Energy Bhd
How large is the market capitalisation of Velesto Energy Bhd (5243)?
The market capitalisation of Velesto Energy Bhd is 2.2B MYR (≈ $537M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Velesto Energy Bhd (5243)?
The price-to-sales ratio of Velesto Energy Bhd is 2.59 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Velesto Energy Bhd (5243)?
Earnings per share at Velesto Energy Bhd are 0.0200 MYR (price ÷ EPS = P/E 11.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Velesto Energy Bhd (5243)?
The dividend yield of Velesto Energy Bhd is 13.0% (payout 150%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Velesto Energy Bhd (5243)?
The net margin of Velesto Energy Bhd is 22.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Velesto Energy Bhd (5243)?
The return on equity (ROE) of Velesto Energy Bhd is 7.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Velesto Energy Bhd (5243)?
On an EBIT basis the return on assets of Velesto Energy Bhd is 3.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Velesto Energy Bhd (5243)?
The operating margin of Velesto Energy Bhd is 20.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Velesto Energy Bhd (5243)?
Revenue at Velesto Energy Bhd is growing −18.4% versus a year earlier (3y avg +15.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Velesto Energy Bhd (5243)?
Earnings per share at Velesto Energy Bhd are growing −47.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Velesto Energy Bhd (5243) hold?
Velesto Energy Bhd holds more cash than debt, 129M MYR net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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