Pepper Money Limited

CHIA:PPM Stock Report

Market Cap: AU$638.0m

Pepper Money Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: PPM (A$1.45) is trading below our estimate of fair value (A$4.56)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PPM. This is calculated by dividing PPM's market cap by their current earnings.
What is PPM's PE Ratio?
PE Ratio6.1x
EarningsAU$104.40m
Market CapAU$637.96m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PPM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10x
LFG Liberty Financial Group
8.6x10.8%AU$999.5m
AFG Australian Finance Group
14.2xn/aAU$411.6m
RMC Resimac Group
11.4x22.7%AU$396.0m
HLI Helia Group
5.6x-34.1%AU$1.3b
PPM Pepper Money
6.1x9.4%AU$638.0m

Price-To-Earnings vs Peers: PPM is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (10x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PPM 6.1xIndustry Avg. 16.3xNo. of Companies3PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PPM is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Global Diversified Financial industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is PPM'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.

PPM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: PPM is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).

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 PPM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.45
AU$1.60
+10.7%
3.4%AU$1.70AU$1.55n/a5
Dec ’25AU$1.36
AU$1.59
+17.3%
3.7%AU$1.70AU$1.55n/a5
Nov ’25AU$1.44
AU$1.59
+10.4%
3.7%AU$1.70AU$1.55n/a5
Oct ’25AU$1.38
AU$1.59
+15.2%
3.7%AU$1.70AU$1.55n/a5
Sep ’25AU$1.38
AU$1.59
+15.2%
3.7%AU$1.70AU$1.55n/a5
Aug ’25AU$1.47
AU$1.63
+11.3%
5.7%AU$1.80AU$1.55n/a5
Jul ’25AU$1.46
AU$1.64
+13.0%
5.3%AU$1.80AU$1.55n/a5
Jun ’25AU$1.46
AU$1.66
+14.0%
5.2%AU$1.80AU$1.55n/a5
May ’25AU$1.46
AU$1.65
+13.3%
5.3%AU$1.80AU$1.55n/a5
Apr ’25AU$1.63
AU$1.65
+1.8%
5.3%AU$1.80AU$1.55n/a5
Mar ’25AU$1.63
AU$1.65
+1.5%
5.3%AU$1.80AU$1.55n/a5
Feb ’25AU$1.38
AU$1.45
+5.1%
4.0%AU$1.50AU$1.35n/a6
Jan ’25AU$1.25
AU$1.47
+18.1%
5.3%AU$1.57AU$1.35AU$1.436
Dec ’24AU$1.17
AU$1.57
+34.5%
14.5%AU$2.10AU$1.35AU$1.367
Nov ’24AU$1.25
AU$1.73
+39.1%
27.9%AU$2.88AU$1.35AU$1.448
Oct ’24AU$1.30
AU$1.73
+33.2%
27.9%AU$2.88AU$1.35AU$1.388
Sep ’24AU$1.38
AU$1.73
+25.9%
27.9%AU$2.88AU$1.35AU$1.388
Aug ’24AU$1.49
AU$1.90
+27.2%
21.5%AU$2.88AU$1.50AU$1.478
Jul ’24AU$1.41
AU$1.93
+37.7%
19.7%AU$2.88AU$1.50AU$1.469
Jun ’24AU$1.28
AU$1.89
+48.2%
21.4%AU$2.88AU$1.50AU$1.469
May ’24AU$1.34
AU$1.89
+41.0%
21.4%AU$2.88AU$1.50AU$1.469
Apr ’24AU$1.33
AU$1.95
+47.1%
28.2%AU$3.39AU$1.50AU$1.639
Mar ’24AU$1.46
AU$1.95
+33.5%
28.2%AU$3.39AU$1.50AU$1.639
Feb ’24AU$1.59
AU$2.16
+36.0%
25.6%AU$3.39AU$1.55AU$1.388
Jan ’24AU$1.43
AU$2.16
+51.8%
25.6%AU$3.39AU$1.55AU$1.258

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/04 14:02
End of Day Share Price 2025/01/03 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Pepper Money Limited is covered by 11 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Thomas StrongCitigroup Inc
Thomas StrongCitigroup Inc
Paul BuysCredit Suisse