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Bank Islam Malaysia Bhd (5258) fair value: what the stock is really worth

As of Sep 23, 2026: fair value of Bank Islam Malaysia Bhd MYR 2.98, price MYR 2.07, upside +44.0%, quality 38 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? No
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Financial Services · MY · ISIN MYL5258OO008

BI Thin data Sep 23, 2026

Bank Islam Malaysia Bhd

5258 · KLSE

SpeculativeUpside exists, but weak quality makes the signal speculative.

Fair value 2.98 MYR · Undervalued (+44%)
!Quality 38/100
!Expensive Growth (revenue 5y +18.6 %/yr)
Highly profitable · 20.9% net margin (TTM)
!Moderate debt · negative free cash flow
·7.00% dividend yield
!Mixed vs. peers (6/14)
!Moderate moat 56/100
!Evidence only low, so the estimate is less certain
!Weak on future: 15 out of 100
!Weak on past: 28 out of 100

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

2.55 MYR 1.41 MYR Fair Value 2.98 MYR Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.

How to read this chart

60‑month range 1.41 MYR – 2.55 MYR · fair‑value band 2.75 MYR – 3.84 MYR · the 2.07 MYR price screens below the 2.98 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.

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Company profile

Bank Islam Malaysia Berhad, together with its subsidiaries, provides Islamic banking products and services in Malaysia. It operates through the Group Retail Banking and Group Institutional Banking segments.

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Bank Islam Malaysia Berhad, together with its subsidiaries, provides Islamic banking products and services in Malaysia. It operates through the Group Retail Banking and Group Institutional Banking segments. The company offers term deposits; savings, current, and investment accounts; personal, home, vehicle, and education financing, as well as corporate and syndicated, vendor, CACKNA scheme, commercial business takaful, procurement and contract, SME and EZ bank guarantee, bridging, and receivables financing; debit and credit cards, and letters of credit; and agent banking. It also provides wealth management products, such as takaful protection, unit trust, will writing, shares trading, and retail sukuk investment services; money and capital markets, foreign remittance services, foreign exchange, fixed income markets, and structured products; business cash lines, financial lease, revolving credits, and trade operations; and currency exchange and liquidity management. In addition, the company offers mobile and web banking, ATM services, bill payment services, transfer services, cash deposit machines, stockbroking, and nominee services. Bank Islam Malaysia Berhad was incorporated in 1983 and is based in Kuala Lumpur, Malaysia.

Stock analysis

Bank Islam Malaysia Bhd (5258) currently trades at 2.07 MYR, while our model-based Fair Value estimate is 2.98 MYR, implying the stock looks roughly 30.5% undervalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of 3.20 MYR per share, and 6 of the 6 models we run sit above the 2.07 MYR price.

Bear case: the Dividend Discount group reads lowest at 2.29 MYR, and 0 of the 6 models stay below the price. Evidence for this calculation is low.

Scenario range: 2.75 MYR (bear) to 3.84 MYR (bull), the price of 2.07 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 38/100 (below-average quality), in the Financial Services sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Bank Islam Malaysia Bhd reported revenue of 5.1B MYR in FY2025 versus 2.2B MYR in FY2021, a compound +22.7%/yr. Reported net income was 557M MYR in FY2025, compounding +1.1%/yr from FY2021.

Key figures

Market cap 4.7B MYR (≈ $1.2B) · P/E ratio 8.6 · P/S ratio 0.95 · EPS (TTM) 0.2400 MYR · Dividend yield 7.0% · Net margin 11.0% · Return on equity 6.9% · Return on assets (EBIT) 0.8%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).

What moves the price

The share trades about 17% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −38% fair-value upside, at 44%, 5258 screens cheaper than that median.

Fair Value models

Bear 2.75 MYR Fair Value 2.98 MYR Bull 3.84 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. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (0.0695 MYR per share) are deliberately not added. 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.
Highest evidence
Residual Income 2.86 MYR 3.00 MYR 3.14 MYR 76
Gordon GGM 1.33 MYR 2.65 MYR 4.01 MYR 67
DDM Multi-Stage 1.33 MYR 2.29 MYR 2.79 MYR 67
All 6 models by family
Dividend Discount
Gordon GGM 1.33 MYR 2.65 MYR 4.01 MYR 67
DDM Multi-Stage 1.33 MYR 2.29 MYR 2.79 MYR 67
Multiples
P/E Multiple 2.40 MYR 3.20 MYR 4.00 MYR 63
P/B Multiple 3.13 MYR 4.18 MYR 5.22 MYR 55
Asset-Based
NCAV (Graham) 1.78 MYR 2.39 MYR 3.56 MYR 54
Economic Profit
Residual Income 2.86 MYR 3.00 MYR 3.14 MYR 76

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Quality Score breakdown

Overall quality 38/100

Of which business quality 30 · Market factors (momentum, volatility) 49

Profitability 22
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 5
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 73
Share count: buybacks or dilution?

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Revenue & earnings trend

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
+18.7%
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.
+15.4%
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.
+18.6%
Start year 2020 (pandemic). Over 10 years: +8.8% a year
Revenue growth 13 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.
+8.4%
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.
+9.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+2.1%
Dividend (yield on the price)7.0%
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.2% vs −4%, picking up
Profit margin 2020 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.34% → 15%
Start year 2020 (pandemic)

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Peer GroupHow 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.Banks - Regional · 1074 stocks

Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 37 · Bottom 25%
Fair Value upside +44% · Top 25%
Profitability
Return on equity (TTM) 7% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 21% · Below median
Operating margin (TTM) 25% · Bottom 25%
Growth and dividend
Revenue growth 3% · Below median
Dividend yield (TTM) 7.0% · Top 25%
Balance sheet
Debt / equity 0.68× · Above median

Valuation Multiplesvs Banks - Regional median · lower = cheaper

P/E (TTM) 8.6× · Cheapest 25%
P/B 0.14× · Cheapest 25%
P/S (TTM) 0.44× · Cheapest 25%
EV/EBITDA 6.1× · Cheaper than median
PEG 1.64× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)92 · sector 12
FUTURE (revenue growth)15 · sector 45
PAST (return on equity)28 · sector 41
HEALTH (low debt)66 · sector 85
DIVIDEND (yield)100 · sector 53

Context: sector, industry, market

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

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
DBS Group D05 77.80 SGD 40.48 SGD −48%
China Merchants Bank Co 3968 HK$51.65 HK$64.29 +24%
Intesa Sanpaolo S.p.A ISP €6.73 €4.04 −40%
HDFC Bank Limited HDFCBANK ₹738.60 ₹418.52 −43%
BNP Paribas SA BNP €101.30 €105.99 +5%
UniCredit S.p.A UCG €83.28 €77.62 −7%
Mizuho Financial Group MFG $10.87 $6.75 −38%
ICICI Bank Limited ICICIBANK ₹1,340 ₹636.31 −53%
The PNC Financial Services Group PNC $227.96 $159.52 −30%
Oversea-Chinese Banking Corporation O39 32.14 SGD 19.80 SGD −38%

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Cite: Fair Value Calculator (2026). "Bank Islam Malaysia Bhd Fair Value". https://www.fairvalue-calculator.com/stock/5258

Frequently asked questions

Is Bank Islam Malaysia Bhd (5258) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of 2.98 MYR versus a price of 2.07 MYR, about +44% upside (undervalued).
What is the fair value of 5258?
Our model-based fair value for Bank Islam Malaysia Bhd is 2.98 MYR (as of Sep 23, 2026), built from audited fundamentals. The current price: 2.07 MYR.
What is the quality score of 5258?
Bank Islam Malaysia Bhd has a Quality Score of 38/100. 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 Bank Islam Malaysia Bhd (5258)?
Our model-based price target is the fair value of 2.98 MYR (as of Sep 23, 2026) from 6 valuation models. Cautious scenario 2.75 MYR, optimistic scenario 3.84 MYR. It is a calculation from audited fundamentals, not an analyst target.
What is the Bank Islam Malaysia Bhd stock forecast for 2026?
Our models put fair value at 2.98 MYR, about +44% upside versus a price of 2.07 MYR (undervalued). Cautious scenario 2.75 MYR, optimistic scenario 3.84 MYR. The calculation is refreshed regularly with new filings.
What is the revenue of Bank Islam Malaysia Bhd (5258)?
Bank Islam Malaysia Bhd reported trailing-twelve-month revenue of about 2.6B MYR (latest available figure, as of Sep 23, 2026).
Does Bank Islam Malaysia Bhd pay a dividend?
Bank Islam Malaysia Bhd currently shows a dividend yield of about 7.00% relative to its recent price (as of Sep 23, 2026).
What is the intrinsic value of Bank Islam Malaysia Bhd (5258)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bank Islam Malaysia Bhd it is 2.98 MYR per share (as of Sep 23, 2026), against a price of 2.07 MYR. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Bank Islam Malaysia Bhd stock overvalued or undervalued in 2026?
As of Sep 23, 2026, 5258 trades below its calculated fair value: price 2.07 MYR, fair value 2.98 MYR, a gap of about +44% (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 5258?
No. The price is what the market pays today (2.07 MYR); the fair value is what the company's own numbers justify (2.98 MYR). For Bank Islam Malaysia Bhd the two are 0.9100 MYR per share apart. That gap is exactly why we show both numbers side by side.
How much is Bank Islam Malaysia Bhd worth?
The market values Bank Islam Malaysia Bhd at about 4.7B MYR (market capitalisation, as of Sep 23, 2026). Per share that is 2.07 MYR; our models calculate a fair value of 2.98 MYR per share.
What do the bullish and bearish scenarios say about 5258?
Our models span a range for Bank Islam Malaysia Bhd: cautious scenario 2.75 MYR, base 2.98 MYR, optimistic 3.84 MYR per share (as of Sep 23, 2026, price 2.07 MYR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 5258?
Bank Islam Malaysia Bhd trades at a price-to-earnings ratio of 8.6 (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 2.98 MYR is built from several models across several years. Other multiples: PEG 1.6, P/B 0.1, P/S 0.4, EV/EBITDA 6.1.
What is the PEG ratio of 5258?
The PEG ratio of Bank Islam Malaysia Bhd is 1.64 (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 Bank Islam Malaysia Bhd (5258)?
Balance-sheet figures for Bank Islam Malaysia Bhd (as of Sep 23, 2026): return on equity 6.9%, debt of 0.68 per unit of equity. They feed the Quality Score of 38/100, which measures business quality independently of the share price.
How far is 5258 from its 52-week high?
Bank Islam Malaysia Bhd trades at 2.07 MYR, about 17% below its 52-week high of 2.49 MYR and 2% above the low of 2.02 MYR (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of 2.98 MYR is for.
Which stocks are comparable to Bank Islam Malaysia Bhd?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, Intesa Sanpaolo S.p.A, HDFC Bank 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 Bank Islam Malaysia Bhd stock attractive at the current price?
The data as of Sep 23, 2026: price 2.07 MYR, calculated fair value 2.98 MYR (+44%), Quality Score 38/100, from 6 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 5258 calculated?
We run Bank Islam Malaysia Bhd through 6 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 2.98 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. Bank Islam Malaysia Bhd currently trades 44 % 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 Bank Islam Malaysia Bhd (5258)?
The closing price on Sep 23, 2026 was 2.07 MYR. Our model-based fair value is 2.98 MYR, about +44% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bank Islam Malaysia Bhd right now?
The large discount to fair value meets weak quality (38/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case (2.75 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. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Key figures of Bank Islam Malaysia Bhd

How large is the market capitalisation of Bank Islam Malaysia Bhd (5258)?
The market capitalisation of Bank Islam Malaysia Bhd is 4.7B MYR (≈ $1.2B). 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 Bank Islam Malaysia Bhd (5258)?
The price-to-sales ratio of Bank Islam Malaysia Bhd is 0.95 (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 Bank Islam Malaysia Bhd (5258)?
Earnings per share at Bank Islam Malaysia Bhd are 0.2400 MYR (price ÷ EPS = P/E 8.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bank Islam Malaysia Bhd (5258)?
The dividend yield of Bank Islam Malaysia Bhd is 7.0% (payout 60.4%). 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 Bank Islam Malaysia Bhd (5258)?
The net margin of Bank Islam Malaysia Bhd is 11.0% (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 Bank Islam Malaysia Bhd (5258)?
The return on equity (ROE) of Bank Islam Malaysia Bhd is 6.9% (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 Bank Islam Malaysia Bhd (5258)?
On an EBIT basis the return on assets of Bank Islam Malaysia Bhd is 0.8% (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 Bank Islam Malaysia Bhd (5258)?
The operating margin of Bank Islam Malaysia Bhd is 25.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bank Islam Malaysia Bhd (5258)?
Revenue at Bank Islam Malaysia Bhd is growing +2.9% versus a year earlier (3y avg +15.4%). 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 Bank Islam Malaysia Bhd (5258)?
Earnings per share at Bank Islam Malaysia Bhd are growing −8.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Bank Islam Malaysia Bhd (5258) generate?
The free cash flow of Bank Islam Malaysia Bhd is −1.7B MYR (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Bank Islam Malaysia Bhd (5258) carry?
The net debt of Bank Islam Malaysia Bhd is 7.6B MYR (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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