NPN: Five-For-One Stock Split Will Unlock Additional Shareholder Value

Analysts have modestly trimmed their price target on Naspers to roughly $1,586 from about $1,607, as higher assumed discount rates and lower long term profit margins, partly offset by stronger revenue growth expectations and a higher future earnings multiple, recalibrate their valuation models.

What's in the News

• Naspers Limited declared an annual dividend of ZAR 5.08 per share, payable on December 08, 2025, with an ex-dividend date of December 03, 2025, and a record date of December 05, 2025 (Key Developments).
• The company announced a 5-for-1 stock split or significant stock dividend effective October 01, 2025, which may improve liquidity and retail investor access to the shares (Key Developments).

Valuation Changes

• The Fair Value Estimate has slipped slightly to about ZAR 1,586 from roughly ZAR 1,607, reflecting modest downward pressure on the overall valuation.
• The Discount Rate has risen slightly to around 21.2 percent from about 21.0 percent, implying a marginally higher required return and higher perceived risk.
• The Revenue Growth Assumption has increased meaningfully to approximately 18.0 percent from about 12.9 percent, signaling stronger expectations for top line expansion.
• The Net Profit Margin Assumption has fallen significantly to roughly 39.7 percent from about 61.0 percent, indicating a more conservative view on long term profitability.
• The Future P/E Multiple has increased to about 20.8 times earnings from around 16.9 times, suggesting a higher valuation placed on expected future earnings.