We’ve recently updated our valuation analysis.

Netwealth Group Valuation

Is NWL 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 NWL?

Other financial metrics that can be useful for relative valuation.

NWL 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/Revenue18.7x
Enterprise Value/EBITDA39.2x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average66.9x
PPT Perpetual
29.7x23.4%AU$3.0b
IFL Insignia Financial
84.1x33.7%AU$2.3b
PNI Pinnacle Investment Management Group
30.1x17.1%AU$2.0b
GQG GQG Partners
123.8x18.1%AU$4.6b
NWL Netwealth Group
59.8x16.7%AU$3.3b

Price-To-Earnings vs Peers: NWL is good value based on its Price-To-Earnings Ratio (59.8x) compared to the peer average (66.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.7%
n/an/an/a

Price-To-Earnings vs Industry: NWL is expensive based on its Price-To-Earnings Ratio (59.8x) compared to the Australian Capital Markets industry average (17.7x)


Price to Earnings Ratio vs Fair Ratio

What is NWL'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.

NWL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio59.8x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: NWL is expensive based on its Price-To-Earnings Ratio (59.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).


Share Price vs Fair Value

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

Below Fair Value: NWL (A$13.61) is trading above our estimate of fair value (A$7.11)

Significantly Below Fair Value: NWL 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 NWL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$13.61
AU$13.75
+1.1%
14.9%AU$17.00AU$9.00n/a13
Jan ’24AU$12.10
AU$13.92
+15.0%
15.0%AU$17.00AU$9.00n/a12
Dec ’23AU$14.10
AU$13.92
-1.3%
15.0%AU$17.00AU$9.00n/a12
Nov ’23AU$12.40
AU$13.64
+10.0%
14.3%AU$16.70AU$9.00n/a11
Oct ’23AU$12.13
AU$13.93
+14.8%
17.5%AU$16.70AU$7.30n/a11
Sep ’23AU$12.62
AU$13.93
+10.4%
17.5%AU$16.70AU$7.30n/a11
Aug ’23AU$13.14
AU$13.59
+3.4%
18.5%AU$16.50AU$6.80n/a11
Jul ’23AU$12.65
AU$14.32
+13.2%
20.9%AU$19.50AU$6.80n/a11
Jun ’23AU$13.10
AU$14.56
+11.1%
21.4%AU$19.50AU$6.80n/a11
May ’23AU$13.11
AU$14.57
+11.2%
21.2%AU$19.50AU$6.80n/a11
Apr ’23AU$14.83
AU$15.01
+1.2%
21.6%AU$19.50AU$6.80n/a10
Mar ’23AU$14.05
AU$15.01
+6.8%
21.6%AU$19.50AU$6.80n/a10
Feb ’23AU$15.25
AU$16.38
+7.4%
23.7%AU$20.50AU$6.50AU$13.5010
Jan ’23AU$17.69
AU$15.69
-11.3%
23.1%AU$19.50AU$6.50AU$12.1010
Dec ’22AU$16.24
AU$15.69
-3.4%
23.1%AU$19.50AU$6.50AU$14.1010
Nov ’22AU$17.51
AU$15.69
-10.4%
23.1%AU$19.50AU$6.50AU$12.4010
Oct ’22AU$14.10
AU$14.52
+3.0%
23.2%AU$17.75AU$6.50AU$12.138
Sep ’22AU$15.63
AU$14.61
-6.5%
21.8%AU$17.75AU$6.50AU$12.629
Aug ’22AU$15.64
AU$15.37
-1.7%
23.6%AU$18.25AU$6.20AU$13.149
Jul ’22AU$16.75
AU$14.37
-14.2%
23.2%AU$18.20AU$6.20AU$12.659
Jun ’22AU$14.68
AU$14.19
-3.3%
23.1%AU$18.20AU$6.20AU$13.109
May ’22AU$14.89
AU$14.19
-4.7%
23.1%AU$18.20AU$6.20AU$13.119
Apr ’22AU$13.55
AU$14.60
+7.8%
24.4%AU$18.20AU$6.20AU$14.839
Mar ’22AU$14.16
AU$14.92
+5.4%
24.6%AU$18.20AU$6.20AU$14.0510
Feb ’22AU$17.07
AU$14.40
-15.6%
27.7%AU$18.25AU$6.00AU$15.2510

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


Discover undervalued companies