We’ve recently updated our valuation analysis.

ASX Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ASX 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/Revenue7.1x
Enterprise Value/EBITDA10.1x
PEG Ratio4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ASX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average57.3x
ARG Argo Investments
22.3xn/aAU$7.0b
AFI Australian Foundation Investment
25.2xn/aAU$9.5b
GQG GQG Partners
125.5x18.1%AU$4.6b
NWL Netwealth Group
56.2x16.7%AU$3.1b
ASX ASX
26.2x6.5%AU$13.3b

Price-To-Earnings vs Peers: ASX is good value based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (57.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.6%
n/an/an/a

Price-To-Earnings vs Industry: ASX is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the Australian Capital Markets industry average (17.3x)


Price to Earnings Ratio vs Fair Ratio

What is ASX'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.

ASX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.2x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: ASX is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).


Share Price vs Fair Value

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

Below Fair Value: ASX (A$68.95) is trading above our estimate of fair value (A$44.89)

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


Analyst Price Targets

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

The above table shows the analyst ASX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$68.95
AU$71.26
+3.4%
5.1%AU$79.36AU$65.20n/a14
Jan ’24AU$68.02
AU$73.01
+7.3%
7.1%AU$83.40AU$66.00n/a14
Dec ’23AU$70.58
AU$73.52
+4.2%
7.3%AU$83.40AU$66.00n/a13
Nov ’23AU$67.12
AU$77.06
+14.8%
8.3%AU$90.00AU$66.00n/a13
Oct ’23AU$71.76
AU$78.41
+9.3%
8.1%AU$93.00AU$66.00n/a13
Sep ’23AU$78.30
AU$78.46
+0.2%
8.1%AU$93.00AU$66.00n/a13
Aug ’23AU$88.55
AU$79.32
-10.4%
8.9%AU$92.00AU$66.00n/a13
Jul ’23AU$81.58
AU$79.57
-2.5%
8.5%AU$94.00AU$66.00n/a13
Jun ’23AU$81.43
AU$79.75
-2.1%
8.8%AU$94.00AU$66.00n/a13
May ’23AU$86.67
AU$79.80
-7.9%
8.8%AU$94.00AU$66.00n/a13
Apr ’23AU$81.15
AU$79.90
-1.5%
9.3%AU$96.50AU$66.00n/a13
Mar ’23AU$82.22
AU$79.99
-2.7%
9.3%AU$96.50AU$66.00n/a13
Feb ’23AU$83.73
AU$79.84
-4.6%
11.9%AU$103.50AU$63.00n/a13
Jan ’23AU$92.90
AU$77.09
-17.0%
11.5%AU$101.50AU$63.00AU$68.0213
Dec ’22AU$90.37
AU$76.82
-15.0%
11.4%AU$101.50AU$63.00AU$70.5813
Nov ’22AU$85.03
AU$76.55
-10.0%
10.5%AU$98.00AU$63.00AU$67.1213
Oct ’22AU$79.54
AU$76.70
-3.6%
10.4%AU$97.50AU$63.00AU$71.7613
Sep ’22AU$87.05
AU$76.39
-12.3%
10.4%AU$97.50AU$63.00AU$78.3013
Aug ’22AU$76.89
AU$72.89
-5.2%
10.2%AU$94.00AU$60.00AU$88.5513
Jul ’22AU$77.24
AU$70.40
-8.9%
6.4%AU$76.45AU$60.00AU$81.5813
Jun ’22AU$75.79
AU$69.58
-8.2%
5.9%AU$75.80AU$60.00AU$81.4312
May ’22AU$72.98
AU$69.33
-5.0%
5.8%AU$75.80AU$60.00AU$86.6712
Apr ’22AU$71.07
AU$69.12
-2.7%
5.5%AU$75.80AU$60.00AU$81.1512
Mar ’22AU$68.58
AU$69.63
+1.5%
5.8%AU$75.80AU$60.00AU$82.2213
Feb ’22AU$70.39
AU$70.66
+0.4%
7.7%AU$80.94AU$59.00AU$83.7312
Jan ’22AU$72.00
AU$71.83
-0.2%
7.6%AU$80.94AU$59.00AU$92.9012

Analyst Forecast: Target price is less than 20% higher than the current share price.


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