Perpetual (ASX:PPT): Assessing Fair Value After Rising AUM and Wealth Business Sale Progress

Perpetual (ASX:PPT) saw total assets under management rise by 2.3%, even as net outflows and currency headwinds weighed on results. The company’s ongoing wealth business sale also remains in focus for investors.

See our latest analysis for Perpetual.

Despite resilient operating updates, Perpetual’s share price recently slipped to $19.30 after some short-term weakness, with a 7.7% drop over the past week that offset modest gains posted earlier in the month. Still, the longer-term total shareholder return shows muted momentum, hovering near break-even for one year and remaining negative over three and five years. This signals that investor confidence may be rebuilding but has yet to fully recover.

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With shares trading below analyst targets but momentum still lacking, investors are left to ask whether Perpetual is now an undervalued opportunity or if current prices are fairly reflecting its future prospects.

Most Popular Narrative: 10.9% Undervalued

The most closely followed narrative values Perpetual at A$21.66, which is over a dollar higher than the current share price of A$19.30. Investors eyeing a rebound are watching for key catalysts that might close this gap.

Significant ongoing investment in digital and technology platforms (such as new finance systems, back-office simplification, automation, SaaS offerings, and deployment of AI) is set to streamline operations and lower the cost base. This should translate into structurally higher net margins from FY26 onwards.

Read the complete narrative.

Want to know which bold margin assumptions underpin this valuation? The full narrative reveals game-changing cost initiatives and ambitious profit targets that could surprise even the bulls.

Result: Fair Value of $21.66 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued asset outflows and a shift towards lower-margin strategies could pose a risk to Perpetual’s ability to achieve these more optimistic targets.

Find out about the key risks to this Perpetual narrative.

Build Your Own Perpetual Narrative

If you see things differently or would rather run the numbers for yourself, you can craft your own Perpetual narrative in just minutes using Do it your way

A great starting point for your Perpetual research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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