Australian Foundation Investment Company Limited

ASX:AFI Stock Report

Market Cap: AU$9.3b

Australian Foundation Investment Valuation

Is AFI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AFI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AFI (A$7.4) is trading above our estimate of fair value (A$2.47)

Significantly Below Fair Value: AFI is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for AFI?

Other financial metrics that can be useful for relative valuation.

AFI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue26.9x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does AFI's PE Ratio compare to its peers?

The above table shows the PE ratio for AFI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.2x
ARG Argo Investments
26.3xn/aAU$6.7b
GQG GQG Partners
14.9x9.7%AU$7.9b
NWL Netwealth Group
83.1x16.4%AU$6.9b
PNI Pinnacle Investment Management Group
44.4x14.9%AU$4.0b
AFI Australian Foundation Investment
31.4xn/aAU$9.3b

Price-To-Earnings vs Peers: AFI is good value based on its Price-To-Earnings Ratio (31.4x) compared to the peer average (42.2x).


Price to Earnings Ratio vs Industry

How does AFI's PE Ratio compare vs other companies in the AU Capital Markets Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AFI is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the Australian Capital Markets industry average (19.8x).


Price to Earnings Ratio vs Fair Ratio

What is AFI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AFI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AFI's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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