Magellan Financial Group Limited

ASX:MFG Stock Report

Market Cap: AU$1.9b

Magellan Financial Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 MFG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MFG (A$10.59) is trading below our estimate of fair value (A$15.67)

Significantly Below Fair Value: MFG is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As MFG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MFG. This is calculated by dividing MFG's market cap by their current earnings.
What is MFG's PE Ratio?
PE Ratio7.9x
EarningsAU$238.76m
Market CapAU$1.91b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.4x
AUI Australian United Investment
27.4xn/aAU$1.3b
RPL Regal Partners
24.7x20.9%AU$1.4b
BKI BKI Investment
21.5xn/aAU$1.4b
DUI Diversified United Investment
31.9xn/aAU$1.2b
MFG Magellan Financial Group
7.9x-9.2%AU$1.9b

Price-To-Earnings vs Peers: MFG is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (26.4x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KBC Keybridge Capital
1.4xn/aUS$6.46m
OEQ Orion Equities
0.6xn/aUS$1.22m
QUE Queste Communications
0.8xn/aUS$862.51k
PEQA Pritchard Equity
2.7xn/aUS$861.02k
No more companies available in this PE range
MFG 7.9xIndustry Avg. 20.0xNo. of Companies7PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MFG is good value based on its Price-To-Earnings Ratio (7.9x) compared to the Australian Capital Markets industry average (20x).

Price to Earnings Ratio vs Fair Ratio

What is MFG'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.

MFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: MFG is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

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 MFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$10.59
AU$9.97
-5.8%
6.9%AU$11.44AU$9.00n/a10
Nov ’25AU$10.64
AU$9.98
-6.2%
6.9%AU$11.44AU$9.00n/a10
Oct ’25AU$10.07
AU$9.88
-1.9%
7.0%AU$11.44AU$9.00n/a10
Sep ’25AU$9.53
AU$9.73
+2.1%
8.3%AU$11.44AU$8.26n/a11
Aug ’25AU$10.26
AU$9.11
-11.2%
8.3%AU$10.50AU$8.20n/a11
Jul ’25AU$8.48
AU$8.89
+4.8%
9.5%AU$10.25AU$7.40n/a11
Jun ’25AU$8.17
AU$8.89
+8.8%
9.5%AU$10.25AU$7.40n/a11
May ’25AU$8.74
AU$8.88
+1.7%
9.5%AU$10.25AU$7.40n/a11
Apr ’25AU$9.89
AU$8.68
-12.2%
9.7%AU$10.25AU$7.40n/a12
Mar ’25AU$8.22
AU$8.67
+5.4%
9.8%AU$10.25AU$7.40n/a12
Feb ’25AU$8.88
AU$8.16
-8.2%
15.2%AU$10.25AU$5.70n/a11
Jan ’25AU$9.28
AU$7.84
-15.6%
17.3%AU$10.50AU$5.70n/a11
Dec ’24AU$7.50
AU$7.69
+2.6%
17.5%AU$10.50AU$5.70n/a12
Nov ’24AU$6.59
AU$7.76
+17.7%
17.9%AU$10.50AU$5.70AU$10.6411
Oct ’24AU$9.22
AU$9.55
+3.5%
14.0%AU$11.50AU$6.45AU$10.0711
Sep ’24AU$9.27
AU$9.55
+3.0%
14.0%AU$11.50AU$6.45AU$9.5311
Aug ’24AU$9.52
AU$8.65
-9.1%
13.4%AU$10.70AU$6.50AU$10.2611
Jul ’24AU$9.49
AU$8.60
-9.4%
13.0%AU$10.70AU$6.60AU$8.4811
Jun ’24AU$7.88
AU$8.60
+9.1%
13.0%AU$10.70AU$6.60AU$8.1711
May ’24AU$8.16
AU$8.79
+7.7%
16.0%AU$11.50AU$6.60AU$8.7410
Apr ’24AU$8.68
AU$9.58
+10.3%
12.7%AU$11.50AU$7.00AU$9.8911
Mar ’24AU$8.76
AU$9.58
+9.3%
12.7%AU$11.50AU$7.00AU$8.2211
Feb ’24AU$8.88
AU$9.39
+5.7%
13.0%AU$11.50AU$7.50AU$8.8811
Jan ’24AU$8.94
AU$10.69
+19.6%
29.9%AU$20.00AU$7.50AU$9.2811
Dec ’23AU$9.98
AU$10.72
+7.4%
29.7%AU$20.00AU$7.50AU$7.5011
Nov ’23AU$10.14
AU$11.05
+9.0%
28.9%AU$20.00AU$7.50AU$6.5911

Analyst Forecast: Target price is lower than the current share price.

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