Magellan Financial Group Limited

ASX:MFG Stock Report

Market Cap: AU$1.7b

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.

AU$13.25
Fair Value
24.1% undervalued intrinsic discount
9
Number of Analysts

Below Fair Value: MFG (A$10.06) is trading below our estimate of fair value (A$13.25)

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 Ratio10.5x
EarningsAU$165.02m
Market CapAU$1.73b

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 Average66.9x
AUI Australian United Investment
28.3xn/aAU$1.4b
BKI BKI Investment
23.2xn/aAU$1.4b
DUI Diversified United Investment
30.1xn/aAU$1.1b
IFL Insignia Financial
186.2x26.45%AU$3.0b
MFG Magellan Financial Group
10.5x0.11%AU$1.7b

Price-To-Earnings vs Peers: MFG is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (66.9x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BPH BPH Energy
1.6xn/aUS$7.24m
KBC Keybridge Capital
1.4xn/aUS$6.46m
DWY Dawney & Co
2.5xn/aUS$2.88m
OEQ Orion Equities
2.1xn/aUS$1.81m
MFG 10.5xIndustry Avg. 22.8xNo. of Companies11PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MFG is good value based on its Price-To-Earnings Ratio (10.5x) compared to the Australian Capital Markets industry average (22.8x).

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 Ratio10.5x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: MFG is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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$10.06
AU$10.09
+0.33%
13.33%AU$12.40AU$7.65n/a9
Sep ’26AU$10.13
AU$10.03
-1.00%
12.94%AU$12.00AU$7.65n/a9
Aug ’26AU$10.56
AU$8.91
-15.63%
8.13%AU$10.35AU$7.40n/a10
Jul ’26AU$8.72
AU$8.68
-0.40%
11.22%AU$10.20AU$6.30n/a10
Jun ’26AU$8.37
AU$8.55
+2.21%
9.71%AU$9.35AU$6.30n/a10
May ’26AU$7.85
AU$8.58
+9.26%
11.13%AU$9.90AU$6.30n/a10
Apr ’26AU$7.67
AU$9.20
+20.01%
7.68%AU$10.57AU$8.20n/a10
Mar ’26AU$8.07
AU$9.32
+15.46%
7.01%AU$10.57AU$8.20n/a10
Feb ’26AU$10.51
AU$10.29
-2.10%
7.98%AU$11.64AU$9.30n/a10
Jan ’26AU$11.12
AU$10.01
-9.94%
6.72%AU$11.44AU$9.00n/a10
Dec ’25AU$10.93
AU$9.97
-8.75%
6.86%AU$11.44AU$9.00n/a10
Nov ’25AU$10.64
AU$9.98
-6.21%
6.85%AU$11.44AU$9.00n/a10
Oct ’25AU$10.07
AU$9.88
-1.90%
7.00%AU$11.44AU$9.00AU$9.7710
Sep ’25AU$9.53
AU$9.73
+2.12%
8.29%AU$11.44AU$8.26AU$10.1311
Aug ’25AU$10.26
AU$9.11
-11.17%
8.28%AU$10.50AU$8.20AU$10.5611
Jul ’25AU$8.48
AU$8.89
+4.82%
9.51%AU$10.25AU$7.40AU$8.7211
Jun ’25AU$8.17
AU$8.89
+8.79%
9.51%AU$10.25AU$7.40AU$8.3711
May ’25AU$8.74
AU$8.88
+1.66%
9.47%AU$10.25AU$7.40AU$7.8511
Apr ’25AU$9.89
AU$8.68
-12.21%
9.66%AU$10.25AU$7.40AU$7.6712
Mar ’25AU$8.22
AU$8.67
+5.42%
9.76%AU$10.25AU$7.40AU$8.0712
Feb ’25AU$8.88
AU$8.16
-8.16%
15.16%AU$10.25AU$5.70AU$10.5111
Jan ’25AU$9.28
AU$7.84
-15.55%
17.28%AU$10.50AU$5.70AU$11.1211
Dec ’24AU$7.50
AU$7.69
+2.60%
17.49%AU$10.50AU$5.70AU$10.9312
Nov ’24AU$6.59
AU$7.76
+17.72%
17.90%AU$10.50AU$5.70AU$10.6411
Oct ’24AU$9.22
AU$9.55
+3.53%
14.03%AU$11.50AU$6.45AU$10.0711
AU$10.09
Fair Value
0.3% undervalued intrinsic discount
9
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/04 16:01
End of Day Share Price 2025/10/03 00:00
Earnings2025/06/30
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Magellan Financial Group Limited is covered by 15 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Lara TufegdzicBofA Global Research
Richard AmlandCLSA
James CordukesCredit Suisse