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Velesto Energy Berhad, an investment holding company, (5243) Fair Value & Analysis

Energy · MY · Market cap 2.2B MYR

VE Velesto Energy Berhad, an investment holding company, 5243 · KLSE
Price0.2450 MYR
Fair Value0.3400 MYR
Upside+38.8%
Quality64/100
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Expensive Growth
Highly profitable · 20.8% net margin
Low debt · generates free cash flow
11.11% dividend yield
Ranks above peers (13/14)
Moderate moat 58/100
Evidence: High Range 0.2600 MYR – 0.4200 MYR Share as image

Fair value as of: Jul 15, 2026

From 26 valuation models · updated 25 days ago

Share price −14.0% over the past month.

A solid business, screening 39% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (0.2600 MYR). The market is more pessimistic than our downside scenario.
  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

0.3450 MYR 0.0624 MYR Fair Value 0.3400 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range 0.0624 MYR – 0.3450 MYR · fair‑value band 0.2600 MYR – 0.4200 MYR · the 0.2450 MYR price screens below the 0.3400 MYR fair value. Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Velesto Energy Berhad, an investment holding company, (5243) currently trades at 0.2450 MYR, while our model-based Fair Value estimate is 0.3400 MYR, implying the stock looks roughly 38.8% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Energy 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, Velesto Energy Berhad, an investment holding company, generated revenue of 852M MYR at a net margin of 20.8%. Revenue declined 18.4% year over year. It earns a return on equity of 7.1%. The balance sheet holds a net cash position of 129M MYR. Fundamentals as of Jul 15, 2026

Our scenario range runs from 0.2600 MYR (bear case) to 0.4200 MYR (bull case); at 0.2450 MYR, the current price sits below 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 30% below its 52-week high and 54% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -45% fair-value upside, at 39%, 5243 screens cheaper 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
Growth DCF 0.3600 MYR 0.5700 MYR 0.8900 MYR 80
Residual Income 0.2400 MYR 0.2600 MYR 0.3000 MYR 76
Rev-Margin DCF 0.2000 MYR 0.2800 MYR 0.3800 MYR 74
All 26 models by family
DCF Models
FCF DCF 0.3600 MYR 0.5800 MYR 0.9500 MYR 38
Owner Earnings 0.3600 MYR 0.5900 MYR 0.9600 MYR 31
5Y Revenue Exit 0.2000 MYR 0.2800 MYR 0.3700 MYR 39
5Y EBITDA Exit 0.2900 MYR 0.4500 MYR 0.6500 MYR 41
5Y P/E Exit 0.3000 MYR 0.4700 MYR 0.6600 MYR 38
10Y Revenue Exit 0.2500 MYR 0.3400 MYR 0.4600 MYR 36
10Y EBITDA Exit 0.3100 MYR 0.4600 MYR 0.6800 MYR 37
10Y P/E Exit 0.3100 MYR 0.4700 MYR 0.6900 MYR 35
Earnings-Based
Graham-Dodd 0.1700 MYR 0.7000 MYR 0.9500 MYR 54
Lynch FV 0.1800 MYR 0.2500 MYR 0.3300 MYR 50
PEG = 1.0 0.1800 MYR 0.2500 MYR 0.3300 MYR 46
EPV 0.2600 MYR 0.2900 MYR 0.3200 MYR 59
Dividend Discount
Gordon GGM 0.1500 MYR 0.3000 MYR 0.4600 MYR 70
DDM Multi-Stage 0.1500 MYR 0.2600 MYR 0.3200 MYR 61
Multiples
P/E Multiple 0.2600 MYR 0.3400 MYR 0.4300 MYR 63
P/S Multiple 0.1000 MYR 0.1300 MYR 0.1600 MYR 58
P/B Multiple 0.3100 MYR 0.4200 MYR 0.5200 MYR 55
EV/EBIT 0.2500 MYR 0.3200 MYR 0.3900 MYR 53
EV/EBITDA 0.2700 MYR 0.3500 MYR 0.4400 MYR 54
EV/Revenue 0.1200 MYR 0.1600 MYR 0.2000 MYR 43
Asset-Based
NCAV (Graham) 0.1400 MYR 0.1900 MYR 0.2900 MYR 50
Growth DCF
Growth DCF 0.3600 MYR 0.5700 MYR 0.8900 MYR 80
Rev-Margin DCF 0.2000 MYR 0.2800 MYR 0.3800 MYR 74
Economic Profit
Residual Income 0.2400 MYR 0.2600 MYR 0.3000 MYR 76
ROIC Compounder 0.2600 MYR 0.2900 MYR 0.3700 MYR 72
Growth Earnings
Growth-Adj P/E 0.2400 MYR 0.3500 MYR 0.4500 MYR 68

Widest divergence: DCF Models (0.4600 MYR) versus Asset-Based (0.1900 MYR). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 852M MYR
Revenue growth (YoY) -18.4%
Net margin 20.8%
Return on equity 7.1%
Free cash flow 229M MYR FY2025
P/E ratio 15.0
More key figures
Operating margin 20.0%
EPS (TTM) 0.0200 MYR
Dividend yield 10.0%
EPS growth (YoY) -47.1%
Net cash 129M MYR FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 64 · Market factors (momentum, volatility) 60

Profitability 42
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 84
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 82
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

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.

Full company description

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.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Velesto Energy Berhad, an investment holding company, 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.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
899M MYR
Latest YoY
−33.9%
Avg. growth/yr (3Y)
+15.7%
Avg. growth/yr (5Y)
+10.4%
Avg. growth/yr (15Y)
+6.5%
Revenue +24.2%/yr
FY21 378M MYR
FY22 581M MYR
FY23 1.2B MYR
FY24 1.4B MYR
FY25 899M MYR
Net income
FY21 −90.8M MYR
FY22 −100M MYR
FY23 99.5M MYR
FY24 208M MYR
FY25 202M MYR

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Cite: Fair Value Calculator (2026). "Velesto Energy Berhad, an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/5243

Peer Group

Oil & Gas Drilling · 31 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 64 · Top 25%
Fair Value upside +39% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth -18% · Bottom 25%
Dividend yield (TTM) 11.1% · Top 25%

Valuation Multiples vs Oil & Gas Drilling median · lower = cheaper

P/E (TTM) 13.3× · Cheaper than median
P/B 0.22× · Cheaper than 75% of peers
P/S (TTM) 0.63× · Cheaper than median
P/FCF 2.3× · Cheaper than 75% of peers
EV/EBITDA 0.7× · Cheaper than 75% of peers

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 85 · sector 0
FUTURE 0 · sector 2
PAST 28 · sector 17
HEALTH 100 · sector 84
DIVIDEND 100 · sector 66

Values & ESG

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

Oil & gas

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

Similar stocks

10 more Oil & Gas Drilling stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Noble Corporation NE $41.79 $23.09 -45%
Sinopec Oilfield Service Corporation 600871 ¥2.21 ¥0.4900 -78%
Transocean Ltd RIG $5.14 $2.16 -58%
Valaris Limited VAL $79.57 $63.09 -21%
Patterson-UTI Energy, Inc PTEN $9.39 $12.20 +30%
Helmerich & Payne, Inc HP $34.14 $9.25 -73%
Seadrill Limited SDRL $42.86 $10.17 -76%
Arabian Drilling Company 2381 80.70 SAR 11.09 SAR -86%
Nabors Industries Ltd NBR $84.72 $209.20 +147%
Borr Drilling Limited BORR kr 41.99 kr 27.75 -34%

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Frequently asked questions

Is Velesto Energy Berhad, an investment holding company, (5243) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of 0.3400 MYR versus a price of 0.2450 MYR, about +39% (undervalued).
What is the fair value of 5243?
Our model-based fair value for Velesto Energy Berhad, an investment holding company, is 0.3400 MYR (as of Jul 15, 2026), built from audited fundamentals. The current price is 0.2450 MYR.
What is the quality score of 5243?
Velesto Energy Berhad, an investment holding company, 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 revenue of Velesto Energy Berhad, an investment holding company, (5243)?
Velesto Energy Berhad, an investment holding company, reported trailing-twelve-month revenue of about 852M MYR (latest available figure, as of Jul 15, 2026).
What is the net profit margin of 5243?
The net profit margin of Velesto Energy Berhad, an investment holding company, is about 20.8%, meaning it keeps roughly 20.8% of revenue as net income. Based on the latest reported figures.
Does Velesto Energy Berhad, an investment holding company, pay a dividend?
Velesto Energy Berhad, an investment holding company, currently shows a dividend yield of about 10.00% relative to its recent price (as of Jul 15, 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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