Liberty Financial Group Limited

CHIA:LFG Stock Report

Market Cap: AU$996.5m

Liberty Financial Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: LFG (A$3.3) is trading below our estimate of fair value (A$10.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LFG. This is calculated by dividing LFG's market cap by their current earnings.
What is LFG's PE Ratio?
PE Ratio8.6x
EarningsAU$115.81m
Market CapAU$996.48m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.8x
PPM Pepper Money
5.5x9.4%AU$576.7m
HLI Helia Group
5.4x-34.1%AU$1.2b
AFG Australian Finance Group
14.1xn/aAU$408.9m
RMC Resimac Group
10x22.7%AU$346.0m
LFG Liberty Financial Group
8.6x10.3%AU$996.5m

Price-To-Earnings vs Peers: LFG is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LFG 8.6xIndustry Avg. 15.8xNo. of Companies5PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LFG is good value based on its Price-To-Earnings Ratio (8.6x) compared to the Global Diversified Financial industry average (15.8x).

Price to Earnings Ratio vs Fair Ratio

What is LFG'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.

LFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.6x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: LFG is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

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 LFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.30
AU$4.10
+24.2%
5.9%AU$4.50AU$3.75n/a5
Nov ’25AU$3.22
AU$4.10
+27.3%
5.9%AU$4.50AU$3.75n/a5
Oct ’25AU$3.58
AU$4.09
+14.2%
5.3%AU$4.35AU$3.75n/a4
Sep ’25AU$3.45
AU$4.09
+18.5%
5.3%AU$4.35AU$3.75n/a4
Aug ’25AU$3.68
AU$4.15
+12.8%
2.6%AU$4.25AU$4.00n/a4
Jul ’25AU$3.73
AU$4.20
+12.6%
1.5%AU$4.25AU$4.10n/a4
Jun ’25AU$3.88
AU$4.25
+9.5%
0.8%AU$4.30AU$4.20n/a4
May ’25AU$3.96
AU$4.25
+7.3%
0.8%AU$4.30AU$4.20n/a4
Apr ’25AU$3.90
AU$4.19
+7.4%
2.7%AU$4.30AU$4.00n/a4
Mar ’25AU$4.00
AU$4.19
+4.7%
2.7%AU$4.30AU$4.00n/a4
Feb ’25AU$4.11
AU$4.16
+1.1%
7.4%AU$4.60AU$3.65n/a5
Jan ’25AU$4.07
AU$3.98
-2.2%
5.4%AU$4.30AU$3.65n/a5
Dec ’24AU$4.20
AU$3.98
-5.2%
5.4%AU$4.30AU$3.65n/a5
Nov ’24AU$3.90
AU$3.98
+2.1%
5.4%AU$4.30AU$3.65AU$3.225
Oct ’24AU$3.58
AU$3.98
+11.2%
5.4%AU$4.30AU$3.65AU$3.585
Sep ’24AU$3.72
AU$3.99
+7.3%
5.6%AU$4.30AU$3.65AU$3.455
Aug ’24AU$3.91
AU$4.07
+4.1%
1.7%AU$4.15AU$4.00AU$3.685
Jul ’24AU$3.65
AU$4.17
+14.2%
4.3%AU$4.55AU$4.00AU$3.736
Jun ’24AU$3.69
AU$4.17
+12.9%
4.5%AU$4.55AU$3.95AU$3.886
May ’24AU$3.84
AU$4.17
+8.5%
4.5%AU$4.55AU$3.95AU$3.966
Apr ’24AU$3.67
AU$4.17
+13.5%
4.5%AU$4.55AU$3.95AU$3.906
Mar ’24AU$3.83
AU$4.20
+9.7%
3.9%AU$4.55AU$4.05AU$4.006
Feb ’24AU$3.90
AU$4.59
+17.7%
17.6%AU$6.35AU$3.95AU$4.116
Jan ’24AU$3.97
AU$4.83
+21.7%
16.8%AU$6.35AU$3.95AU$4.076
Dec ’23AU$4.09
AU$4.83
+18.2%
16.8%AU$6.35AU$3.95AU$4.206
Nov ’23AU$3.59
AU$4.94
+37.7%
14.6%AU$6.35AU$4.25AU$3.906

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

OFX Group

AU$334.8m

Provides international payments and foreign exchange services in the Asia Pacific, North America, Europe, the Middle East, and Africa.

OFX

AU$1.41

7D

-2.4%

1Y

1.8%

OFX Group

AU$334.8m

Provides international payments and foreign exchange services in the Asia Pacific, North America, Europe, the Middle East, and Africa.

OFX

AU$1.40

7D

-2.1%

1Y

1.4%

Navigator Global Investments

AU$808.6m

HFA Holdings Limited operates as a fund management company in Australia.

NGI

AU$1.67

7D

-1.8%

1Y

37.0%