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CDA: Rising Revenue Expectations Will Likely Expose Stretched Earnings Multiple

Update shared on 13 Dec 2025

Fair value Increased 14%
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AnalystLowTarget's Fair Value
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1Y
93.8%
7D
-1.6%

Analysts have lifted their price target for Codan from A$18.50 to A$21.00, as they now expect slightly faster revenue growth, marginally stronger profit margins and a higher future P/E multiple to better reflect the company’s earnings potential.

Valuation Changes

  • The Fair Value Estimate has risen modestly from A$18.50 to A$21.00, reflecting a reassessment of Codan’s long term earnings potential.
  • The Discount Rate has increased slightly from 7.72 percent to 8.06 percent, implying a marginally higher required return and risk adjustment.
  • Revenue Growth has been lifted from 12.20 percent to 13.38 percent per year, indicating expectations for somewhat faster top line expansion.
  • The Net Profit Margin has edged up from 18.71 percent to 18.98 percent, signalling a small improvement in anticipated profitability.
  • The future P/E multiple has risen from 23.6x to 25.9x, indicating a higher valuation being applied to Codan’s projected earnings.

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