Macquarie Group Limited

CHIA:MQG Stock Report

Market Cap: AU$84.3b

Macquarie Group Valuation

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

Below Fair Value: MQG (A$232.1) is trading above our estimate of fair value (A$169.36)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MQG. This is calculated by dividing MQG's market cap by their current earnings.
What is MQG's PE Ratio?
PE Ratio23.6x
EarningsAU$3.57b
Market CapAU$84.27b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MQG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.5x
ASX ASX
27.8x4.3%AU$13.2b
AFI Australian Foundation Investment
31.7xn/aAU$9.4b
ARG Argo Investments
27.1xn/aAU$6.9b
NWL Netwealth Group
87.4x16.5%AU$7.3b
MQG Macquarie Group
23.6x9.9%AU$84.3b

Price-To-Earnings vs Peers: MQG is good value based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (43.5x).

Price to Earnings Ratio vs Industry

How does MQG'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
MQG 23.6xIndustry Avg. 20.0xNo. of Companies8PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MQG is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the Australian Capital Markets industry average (20x).

Price to Earnings Ratio vs Fair Ratio

What is MQG'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.

MQG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.6x
Fair PE Ratio26.9x

Price-To-Earnings vs Fair Ratio: MQG is good value based on its Price-To-Earnings Ratio (23.6x) compared to the estimated Fair Price-To-Earnings Ratio (26.9x).

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 MQG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$232.10
AU$215.12
-7.3%
11.7%AU$248.00AU$167.27n/a12
Nov ’25AU$223.57
AU$210.67
-5.8%
12.4%AU$250.00AU$167.27n/a11
Oct ’25AU$227.51
AU$203.82
-10.4%
11.1%AU$250.00AU$167.27n/a12
Sep ’25AU$215.65
AU$198.49
-8.0%
8.6%AU$234.00AU$167.27n/a12
Aug ’25AU$211.70
AU$198.49
-6.2%
8.6%AU$234.00AU$167.27n/a12
Jul ’25AU$202.86
AU$192.74
-5.0%
7.7%AU$215.00AU$167.27n/a12
Jun ’25AU$190.25
AU$192.53
+1.2%
7.2%AU$215.00AU$167.27n/a13
May ’25AU$185.97
AU$191.90
+3.2%
8.2%AU$225.00AU$161.00n/a12
Apr ’25AU$199.71
AU$191.27
-4.2%
8.2%AU$225.00AU$161.00n/a12
Mar ’25AU$193.81
AU$189.35
-2.3%
6.7%AU$205.00AU$161.00n/a12
Feb ’25AU$187.68
AU$185.47
-1.2%
6.6%AU$205.00AU$161.00n/a12
Jan ’25AU$183.13
AU$182.88
-0.1%
6.8%AU$202.00AU$161.00n/a12
Dec ’24AU$167.40
AU$182.49
+9.0%
6.6%AU$202.00AU$161.00n/a13
Nov ’24AU$160.02
AU$191.01
+19.4%
6.4%AU$215.00AU$170.00AU$223.5713
Oct ’24AU$167.58
AU$190.93
+13.9%
5.6%AU$209.00AU$175.00AU$227.5113
Sep ’24AU$176.61
AU$188.73
+6.9%
6.5%AU$209.00AU$165.00AU$215.6514
Aug ’24AU$177.07
AU$190.30
+7.5%
7.5%AU$218.00AU$165.00AU$211.7014
Jul ’24AU$177.92
AU$193.32
+8.7%
7.9%AU$218.00AU$165.00AU$202.8614
Jun ’24AU$170.49
AU$193.32
+13.4%
7.9%AU$218.00AU$165.00AU$190.2514
May ’24AU$183.94
AU$201.56
+9.6%
8.8%AU$231.00AU$165.00AU$185.9713
Apr ’24AU$175.62
AU$201.56
+14.8%
8.8%AU$231.00AU$165.00AU$199.7113
Mar ’24AU$188.87
AU$201.41
+6.6%
8.8%AU$231.00AU$165.00AU$193.8113
Feb ’24AU$186.61
AU$191.01
+2.4%
9.8%AU$218.00AU$150.00AU$187.6813
Jan ’24AU$167.28
AU$189.21
+13.1%
9.3%AU$215.00AU$150.00AU$183.1313
Dec ’23AU$182.20
AU$195.22
+7.1%
10.4%AU$225.00AU$150.00AU$167.4014
Nov ’23AU$171.64
AU$195.22
+13.7%
10.4%AU$225.00AU$150.00AU$160.0214

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

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%