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MEGACHEM LIMITED (5DS) Fair Value & Analysis

Basic Materials · SG · Market cap 65.3M SGD

ML MEGACHEM LIMITED 5DS · SG
Price0.5200 SGD
Fair Value0.3700 SGD
Upside-28.9%
Quality49/100
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Expensive Growth
Thin margins · 3.1% net margin
Low debt · negative free cash flow
2.04% dividend yield
Ranks above peers (8/13)
Narrow moat 26/100
Evidence: Medium Range 0.3400 SGD – 0.4900 SGD Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 4 days ago

Share price +6.1% over the past month.

Below-average quality, and screening another 29% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (0.4900 SGD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

0.5203 SGD 0.2705 SGD Fair Value 0.3700 SGD Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 0.2705 SGD – 0.5203 SGD · fair‑value band 0.3400 SGD – 0.4900 SGD · the 0.5200 SGD price screens above the 0.3700 SGD fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

MEGACHEM LIMITED (5DS) currently trades at 0.5200 SGD, while our model-based Fair Value estimate is 0.3700 SGD, implying the stock looks roughly 28.9% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, MEGACHEM LIMITED generated revenue of 124M SGD at a net margin of 3.1%. Revenue declined 5.2% year over year. It earns a return on equity of 6.3%. Net debt stands at 20.7M SGD. Fundamentals as of Aug 13, 2026

Our scenario range runs from 0.3400 SGD (bear case) to 0.4900 SGD (bull case); at 0.5200 SGD, the current price sits above 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 near its 52-week high and 33% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -68% fair-value upside, at -29%, 5DS 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 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
Highest evidence
Residual Income 0.3300 SGD 0.3300 SGD 0.3000 SGD 76
ROIC Compounder 0.1800 SGD 0.2000 SGD 0.2100 SGD 72
Gordon GGM 0.0700 SGD 0.0700 SGD 0.0800 SGD 70
All 14 models by family
Earnings-Based
Graham-Dodd 0.2000 SGD 0.2400 SGD 0.2700 SGD 54
EPV 0.1800 SGD 0.2000 SGD 0.2100 SGD 59
Dividend Discount
Gordon GGM 0.0700 SGD 0.0700 SGD 0.0800 SGD 70
DDM Multi-Stage 0.0700 SGD 0.0800 SGD 0.0900 SGD 61
Multiples
P/E Multiple 0.3700 SGD 0.4900 SGD 0.6100 SGD 63
P/S Multiple 0.3700 SGD 0.4900 SGD 0.6100 SGD 58
P/B Multiple 0.3700 SGD 0.4900 SGD 0.6100 SGD 55
EV/EBIT 0.3800 SGD 0.4900 SGD 0.6000 SGD 53
EV/EBITDA 0.3600 SGD 0.4600 SGD 0.5700 SGD 54
EV/Revenue 0.3400 SGD 0.4600 SGD 0.5800 SGD 43
Asset-Based
NCAV (Graham) 0.2300 SGD 0.3100 SGD 0.4600 SGD 50
Economic Profit
Residual Income 0.3300 SGD 0.3300 SGD 0.3000 SGD 76
ROIC Compounder 0.1800 SGD 0.2000 SGD 0.2100 SGD 72
Growth Earnings
Growth-Adj P/E 0.2600 SGD 0.3700 SGD 0.4900 SGD 68

Widest divergence: Multiples (0.4900 SGD) versus Dividend Discount (0.0700 SGD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 124M SGD
Revenue growth (YoY) -5.2%
Net margin 3.1%
Return on equity 6.3%
Free cash flow −8.6M SGD FY2025
P/E ratio 17.3
More key figures
Operating margin 3.6%
EPS (TTM) 0.0300 SGD
Dividend yield 2.0%
EPS growth (YoY) -63.6%
Net debt 20.7M SGD FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 49 · Market factors (momentum, volatility) 68

Profitability 44
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 23
Earnings quality: real cash, not paper profit
Fin. Strength 60
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 85
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

Megachem Limited, an investment holding company, trades in chemicals and chemical-related products in Singapore, Malaysia, the United Kingdom, China, the Middle East, and internationally.

Full company description

Megachem Limited, an investment holding company, trades in chemicals and chemical-related products in Singapore, Malaysia, the United Kingdom, China, the Middle East, and internationally. Its chemical products include paints and inks, polymerization, adhesives, construction, textile, electronics, metal finishings, industrial cleaning, water treatment, pulp and paper, food and beverages, pharmaceuticals, nutraceuticals, cosmeceuticals, homecare, flavours/fragrances, agriculture, feeds, rubber, plastics, polyurethane, polyesters, petrochemicals, lubricants and grease, oil fields, refinery, oleochemicals, and mining chemicals. The company also engages in mixing and blending of chemicals according to customers' formulations. Its chemical contract manufacturing services include liquid and solid blending, and repacking/re-drumming services, as well as packaging and relabeling, raw material supply, chemical dilution, lab analysis, and containers stuffing/unstuffing services. The company was incorporated in 1988 and is headquartered in Singapore.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

MEGACHEM LIMITED reported revenue of 124M SGD in FY2025 versus 139M SGD in FY2021, a compound −2.7%/yr. Reported net income was 3.8M SGD in FY2025, compounding −16.2%/yr from FY2021.

Growth Quality 27/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
124M SGD
Latest YoY
−3.4%
Avg. growth/yr (3Y) 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.
−4.7%
Avg. growth/yr (5Y) 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.
+3.4%
Avg. growth/yr (12Y) 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.
+1.1%
Revenue −2.7%/yr
FY21 139M SGD
FY22 144M SGD
FY23 123M SGD
FY24 129M SGD
FY25 124M SGD
Net income −16.2%/yr
FY21 7.8M SGD
FY22 5.9M SGD
FY23 −5.9M SGD
FY24 7.9M SGD
FY25 3.8M SGD

5DS screens 29% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "MEGACHEM LIMITED Fair Value". https://www.fairvalue-calculator.com/stock/5DS

Peer Group

Specialty Chemicals · 672 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 49 · Below median
Fair Value upside −29% · Above median
Return on equity (TTM) 6% · Above median
Return on assets 2% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth -5% · Below median
Dividend yield (TTM) 2.0% · Above median
Debt / equity 0.10× · Lower than median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 17.3× · Cheaper than median
P/B 0.83× · Cheaper than median
P/S (TTM) 0.41× · Cheaper than 75% of peers
EV/EBITDA 8.7× · Cheaper 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 0 · sector 0
FUTURE 0 · sector 18
PAST 25 · sector 23
HEALTH 95 · sector 95
DIVIDEND 41 · sector 31

VALUE 0: the price sits above our fair-value range.

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $479.43 $222.03 -54%
Wanhua Chemical Group 600309 ¥75.06 ¥68.03 -9%
Novozymes A/S NSISB kr 416.10 kr 170.02 -59%
Asian Paints Limited ASIANPAINT ₹2,756 ₹664.51 -76%
Solar Industries India Limited SOLARINDS ₹18,730 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,702 ₹351.84 -79%
PT Chandra Asri Pacific Tbk TPIA 2,160 IDR 2,322 IDR +8%
Berger Paints India Limited BERGEPAINT ₹559.80 ₹154.46 -72%
Gujarat Fluorochemicals Limited FLUOROCHEM ₹4,566 ₹836.47 -82%
Himadri Speciality Chemical Limited HSCL ₹778.15 ₹248.63 -68%

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Frequently asked questions

Is MEGACHEM LIMITED (5DS) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 0.3700 SGD versus a price of 0.5200 SGD, about −29% (overvalued).
What is the fair value of 5DS?
Our model-based fair value for MEGACHEM LIMITED is 0.3700 SGD (as of Aug 13, 2026), built from audited fundamentals. The current price is 0.5200 SGD.
What is the quality score of 5DS?
MEGACHEM LIMITED has a Quality Score of 49/100. 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 MEGACHEM LIMITED (5DS)?
MEGACHEM LIMITED reported trailing-twelve-month revenue of about 124M SGD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 5DS?
The net profit margin of MEGACHEM LIMITED is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.
Does MEGACHEM LIMITED pay a dividend?
MEGACHEM LIMITED currently shows a dividend yield of about 2.04% relative to its recent price (as of Aug 13, 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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