We’ve recently updated our valuation analysis.

Pepper Money Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 PPM?

Other financial metrics that can be useful for relative valuation.

PPM 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-2.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PPM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.5x
AFG Australian Finance Group
14.9x13.0%AU$455.4m
HLI Helia Group
5.7x-16.8%AU$1.1b
RMC Resimac Group
4.2x4.6%AU$365.9m
LFG Liberty Financial Group
5.4x-3.4%AU$1.1b
PPM Pepper Money
4.1x-1.9%AU$576.1m

Price-To-Earnings vs Peers: PPM is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (7.5x).


Price to Earnings Ratio vs Industry

How does PPM's PE Ratio compare vs other companies in the Global Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PPM is good value based on its Price-To-Earnings Ratio (4.1x) compared to the Global Diversified Financial industry average (13.5x)


Price to Earnings Ratio vs Fair Ratio

What is PPM'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.

PPM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ratio10.5x

Price-To-Earnings vs Fair Ratio: PPM is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.5x).


Share Price vs Fair Value

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

Below Fair Value: PPM (A$1.31) is trading below our estimate of fair value (A$2.15)

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


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 PPM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.31
AU$1.89
+44.3%
21.4%AU$2.88AU$1.50n/a9
May ’24AU$1.34
AU$1.89
+41.0%
21.4%AU$2.88AU$1.50n/a9
Apr ’24AU$1.32
AU$1.95
+47.6%
28.2%AU$3.39AU$1.50n/a9
Mar ’24AU$1.45
AU$1.95
+34.4%
28.2%AU$3.39AU$1.50n/a9
Feb ’24AU$1.58
AU$2.16
+37.3%
25.6%AU$3.39AU$1.55n/a8
Jan ’24AU$1.42
AU$2.16
+52.3%
25.6%AU$3.39AU$1.55n/a8
Dec ’23AU$1.50
AU$2.16
+44.2%
25.6%AU$3.39AU$1.55n/a8
Nov ’23AU$1.49
AU$2.16
+45.6%
25.6%AU$3.39AU$1.55n/a8
Oct ’23AU$1.40
AU$2.20
+57.7%
25.7%AU$3.39AU$1.55n/a8
Sep ’23AU$1.50
AU$2.03
+35.3%
18.1%AU$2.50AU$1.55n/a7
Aug ’23AU$1.63
AU$2.06
+26.4%
27.9%AU$3.00AU$1.50n/a7
Jul ’23AU$1.25
AU$2.06
+65.5%
27.9%AU$3.00AU$1.50n/a7
Jun ’23AU$1.87
AU$2.91
+55.4%
2.6%AU$3.00AU$2.80n/a4
May ’23AU$2.20
AU$2.91
+32.1%
2.6%AU$3.00AU$2.80AU$1.344
Apr ’23AU$2.07
AU$2.88
+39.3%
3.2%AU$3.00AU$2.79AU$1.324
Mar ’23AU$1.90
AU$2.88
+52.2%
3.2%AU$3.00AU$2.79AU$1.454
Feb ’23AU$2.04
AU$3.30
+61.9%
6.9%AU$3.56AU$3.05AU$1.584
Jan ’23AU$2.16
AU$3.30
+52.9%
6.9%AU$3.56AU$3.05AU$1.424
Dec ’22AU$2.11
AU$3.30
+56.5%
6.9%AU$3.56AU$3.05AU$1.504
Nov ’22AU$2.38
AU$3.39
+42.5%
2.9%AU$3.50AU$3.25AU$1.494
Oct ’22AU$2.46
AU$3.39
+37.9%
2.9%AU$3.50AU$3.25AU$1.404
Sep ’22AU$2.72
AU$3.44
+26.5%
1.9%AU$3.50AU$3.35AU$1.503
Aug ’22AU$2.52
AU$3.43
+36.3%
3.8%AU$3.55AU$3.25AU$1.633
Jul ’22AU$2.64
AU$3.53
+33.9%
0.7%AU$3.55AU$3.50AU$1.253

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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