Australian Foundation Investment Company Limited

CHIA:AFI Stock Report

Market Cap: AU$9.4b

Australian Foundation Investment Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: AFI (A$7.48) is trading above our estimate of fair value (A$2.2)

Significantly Below Fair Value: AFI is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AFI. This is calculated by dividing AFI's market cap by their current earnings.
What is AFI's PE Ratio?
PE Ratio31.7x
EarningsAU$296.17m
Market CapAU$9.38b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AFI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.7x
ARG Argo Investments
27.1xn/aAU$6.9b
NWL Netwealth Group
87.4x16.5%AU$7.3b
GQG GQG Partners
12.1x10.2%AU$6.5b
PNI Pinnacle Investment Management Group
56.2x17.4%AU$5.1b
AFI Australian Foundation Investment
31.7xn/aAU$9.4b

Price-To-Earnings vs Peers: AFI is good value based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (45.7x).

Price to Earnings Ratio vs Industry

How does AFI'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$862.06k
PEQA Pritchard Equity
2.7xn/aUS$861.02k
No more companies available in this PE range
AFI 31.7xIndustry Avg. 20.0xNo. of Companies8PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AFI is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the Australian Capital Markets industry average (20x).

Price to Earnings Ratio vs Fair Ratio

What is AFI'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.

AFI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AFI's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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