Assessing Raffles Medical Group (SGX:BSL) Valuation After Strong 2025 Results And Proposed Final Dividend

Raffles Medical Group (SGX:BSL) is back in focus after reporting full year 2025 results and proposing a final ordinary dividend of 3.0 Singapore cents per share, subject to shareholder approval in April 2026. See our latest analysis for Raffles Medical Group. The earnings and dividend announcement comes after a mixed share price run, with a 1 month share price return of 3.5% and a 3 month share price return of 4.6%. However, the 3 year total shareholder return shows a 17.2% decline, suggesting recent momentum has picked up following weaker longer term performance. If this has you thinking about other healthcare names benefiting from similar themes, it could be a good moment to scan 120 healthcare AI stocks as potential next ideas. With earnings per share at S$0.0381 and the proposed S$0.03 dividend, Raffles Medical Group is offering a relatively high cash return compared with its share price. This raises the question of whether the stock represents a genuine value opportunity or whether the market has already priced in future growth. Price-to-Earnings of 26.9x: Is it justified? On a P/E of 26.9x at a S$1.03 share price, Raffles Medical Group sits at a level that suggests investors are paying a premium for each dollar of earnings compared with some peers, even though it also screens as good value against certain benchmarks. The P/E ratio tells you how many times current earnings investors are willing to pay for the stock. For a healthcare group with hospitals, clinics and insurance services, this matters because earnings quality, predictability and growth expectations often influence where that multiple settles. Relative to its direct peers, Raffles Medical Group is described as good value on a P/E of 26.9x compared with a peer average of 29.9x. This points to a lower price tag per dollar of earnings within that peer set. Against the estimated fair P/E of 30.3x, the current 26.9x level also sits below what the regression based fair ratio suggests the market could move towards. At the same time, the company is labelled expensive against the broader Asian healthcare average P/E of 18.6x. This highlights how the market is placing it in a higher quality or higher expectation bucket than the wider regional group. Explore the SWS fair ratio for Raffles Medical Group Result: Price-to-Earnings of 26.9x (UNDERVALUED) However, you also have to weigh risks such as any slowdown in annual revenue and net income growth, or pressure on its relatively high P/E compared with wider Asian healthcare peers. Find out about the key risks to this Raffles Medical Group narrative. Another view using our DCF model While the 26.9x P/E suggests Raffles Medical Group might be on the cheaper side versus certain peers, our DCF model provides an estimated future cash flow value of S$1.94 compared to the current S$1.03 price. That gap hints at potential upside, but how comfortable are you relying on long term cash flow assumptions? Look into how the SWS DCF model arrives at its fair value. BSL Discounted Cash Flow as at Mar 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Raffles Medical Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 222 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps If this mix of potential and risk feels finely balanced, it is worth checking the full picture yourself and acting while the data is fresh. You can start with 3 key rewards and 1 important warning sign. Looking for more investment ideas? If this Raffles Medical Group update has sharpened your thinking, do not stop here. The next step is lining up more quality ideas while the market is distracted. Target stronger cash flows and balance sheets by checking companies in our solid balance sheet and fundamentals stocks screener (373 results), so you are not relying on hope alone. Hunt for potential mispricings with the 222 high quality undervalued stocks, where solid fundamentals meet prices that may not fully reflect them. Lock in potential income ideas by scanning the 463 dividend fortresses, focused on companies offering higher yields with staying power in their payments. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for Free