Challenger Limited

CHIA:CGF Stock Report

Market Cap: AU$5.4b

Challenger Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Discounted Cash Flow
Simply Wall St
AU$7.90
Fair Value
0.2% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: CGF (A$7.89) is trading below our estimate of fair value (A$7.9)

Significantly Below Fair Value: CGF is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CGF. This is calculated by dividing CGF's market cap by their current earnings.
What is CGF's PE Ratio?
PE Ratio36.9x
EarningsAU$147.20m
Market CapAU$5.43b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CGF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.6x
AMP AMP
17.9x12.24%AU$3.2b
WTL WT Financial Group
11.3xn/aAU$42.8m
HUB HUB24
115.7x22.49%AU$6.8b
GQG GQG Partners
9.5x5.77%AU$6.3b
CGF Challenger
36.9x24.73%AU$5.4b

Price-To-Earnings vs Peers: CGF is good value based on its Price-To-Earnings Ratio (36.9x) compared to the peer average (38.6x).

Price to Earnings Ratio vs Industry

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

26 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CGF 36.9xIndustry Avg. 14.4xNo. of Companies85PE01224364860+
26 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CGF is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the Global Diversified Financial industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is CGF'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.

CGF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.9x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: CGF is expensive based on its Price-To-Earnings Ratio (36.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).

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 CGF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$7.89
AU$7.58
-3.91%
7.80%AU$9.15AU$6.45n/a13
May ’26AU$7.18
AU$7.47
+4.04%
5.16%AU$8.00AU$6.45n/a13
Apr ’26AU$5.94
AU$7.10
+19.44%
7.54%AU$7.80AU$5.95n/a14
Mar ’26AU$5.81
AU$7.07
+21.69%
7.73%AU$7.80AU$5.95n/a14
Feb ’26AU$6.33
AU$7.65
+20.80%
7.88%AU$8.60AU$6.60n/a14
Jan ’26AU$6.04
AU$7.80
+29.11%
7.07%AU$8.60AU$6.80n/a14
Dec ’25AU$6.21
AU$7.80
+25.57%
7.07%AU$8.60AU$6.80n/a14
Nov ’25AU$5.99
AU$7.83
+30.66%
6.49%AU$8.60AU$6.80n/a14
Oct ’25AU$6.53
AU$7.99
+22.29%
6.75%AU$8.80AU$7.00n/a13
Sep ’25AU$6.90
AU$7.95
+15.21%
6.73%AU$8.80AU$7.00n/a14
Aug ’25AU$7.07
AU$7.63
+7.88%
5.26%AU$8.50AU$6.95n/a14
Jul ’25AU$6.91
AU$7.61
+10.17%
6.22%AU$8.50AU$6.65n/a14
Jun ’25AU$6.51
AU$7.61
+16.94%
6.22%AU$8.50AU$6.65AU$7.6214
May ’25AU$6.51
AU$7.55
+15.95%
6.33%AU$8.50AU$6.65AU$7.1814
Apr ’25AU$7.10
AU$7.48
+5.36%
6.58%AU$8.50AU$6.65AU$5.9414
Mar ’25AU$6.76
AU$7.48
+10.66%
6.58%AU$8.50AU$6.65AU$5.8114
Feb ’25AU$6.44
AU$7.05
+9.45%
7.22%AU$8.00AU$6.05AU$6.3313
Jan ’25AU$6.47
AU$6.99
+8.03%
7.29%AU$8.00AU$6.05AU$6.0413
Dec ’24AU$5.93
AU$6.99
+17.87%
7.29%AU$8.00AU$6.05AU$6.2113
Nov ’24AU$5.84
AU$6.99
+19.69%
7.29%AU$8.00AU$6.05AU$5.9913
Oct ’24AU$6.43
AU$7.04
+9.51%
7.50%AU$8.00AU$6.10AU$6.5313
Sep ’24AU$6.68
AU$7.07
+5.92%
7.61%AU$8.00AU$6.10AU$6.9015
Aug ’24AU$7.03
AU$7.18
+2.20%
9.44%AU$8.60AU$6.00AU$7.0714
Jul ’24AU$6.47
AU$7.17
+10.81%
9.25%AU$8.60AU$6.00AU$6.9114
Jun ’24AU$6.21
AU$7.16
+15.33%
9.44%AU$8.60AU$5.90AU$6.5114
AnalystConsensusTarget
Consensus Narrative from 13 Analysts
AU$7.58
Fair Value
4.1% overvalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/03 21:27
End of Day Share Price 2025/06/03 00:00
Earnings2024/12/31
Annual Earnings2024/06/30

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

Challenger Limited is covered by 31 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Anthony HooANZ Equities Pty Limited
Brett Le MesurierAxiome Equities
Andrew AdamsBarrenjoey Markets Pty Limited