nib holdings limited

ASX:NHF Stock Report

Market Cap: AU$2.7b

nib holdings Valuation

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

Below Fair Value: NHF (A$5.57) is trading below our estimate of fair value (A$11.84)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NHF. This is calculated by dividing NHF's market cap by their current earnings.
What is NHF's PE Ratio?
PE Ratio14.5x
EarningsAU$186.60m
Market CapAU$2.74b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NHF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.6x
GDG Generation Development Group
192.2x42.3%AU$1.1b
CVW ClearView Wealth
31.6x40.8%AU$228.1m
NOL NobleOak Life
14.9x23.9%AU$139.9m
SDF Steadfast Group
27.6x10.9%AU$6.2b
NHF nib holdings
14.5x6.3%AU$2.7b

Price-To-Earnings vs Peers: NHF is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (66.6x).

Price to Earnings Ratio vs Industry

How does NHF's PE Ratio compare vs other companies in the Global Insurance Industry?

16 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NHF 14.5xIndustry Avg. 11.3xNo. of Companies67PE0816243240+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NHF is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the Global Insurance industry average (11.3x).

Price to Earnings Ratio vs Fair Ratio

What is NHF'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.

NHF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: NHF is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).

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 NHF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$5.57
AU$6.82
+22.5%
10.7%AU$8.50AU$5.45n/a11
Nov ’25AU$5.81
AU$7.11
+22.5%
8.8%AU$8.50AU$6.30n/a11
Oct ’25AU$5.92
AU$7.20
+21.6%
8.2%AU$8.50AU$6.30n/a11
Sep ’25AU$6.26
AU$7.25
+15.9%
9.8%AU$8.50AU$6.25n/a12
Aug ’25AU$7.52
AU$8.08
+7.5%
5.5%AU$8.65AU$7.35n/a12
Jul ’25AU$7.25
AU$8.16
+12.6%
6.0%AU$8.90AU$7.30n/a12
Jun ’25AU$7.44
AU$8.13
+9.2%
7.1%AU$9.30AU$7.30n/a13
May ’25AU$7.22
AU$8.19
+13.5%
6.7%AU$9.30AU$7.30n/a12
Apr ’25AU$7.86
AU$8.23
+4.7%
7.2%AU$9.30AU$7.30n/a12
Mar ’25AU$7.52
AU$8.15
+8.4%
7.6%AU$9.30AU$7.30n/a13
Feb ’25AU$8.00
AU$8.30
+3.8%
7.3%AU$9.50AU$7.30n/a12
Jan ’25AU$7.39
AU$8.24
+11.6%
6.8%AU$9.50AU$7.30n/a12
Dec ’24AU$7.71
AU$8.19
+6.3%
6.5%AU$9.50AU$7.30n/a13
Nov ’24AU$7.23
AU$8.38
+15.9%
8.1%AU$9.70AU$7.30AU$5.8113
Oct ’24AU$7.43
AU$8.45
+13.8%
7.7%AU$9.70AU$7.30AU$5.9213
Sep ’24AU$8.24
AU$8.45
+2.6%
7.7%AU$9.70AU$7.30AU$6.2613
Aug ’24AU$8.23
AU$8.31
+0.9%
9.3%AU$9.70AU$7.00AU$7.5213
Jul ’24AU$8.45
AU$7.89
-6.6%
8.8%AU$9.20AU$6.95AU$7.2513
Jun ’24AU$8.44
AU$7.88
-6.6%
8.5%AU$9.20AU$6.95AU$7.4414
May ’24AU$7.58
AU$7.64
+0.8%
5.7%AU$8.50AU$6.95AU$7.2213
Apr ’24AU$7.05
AU$7.64
+8.4%
5.7%AU$8.50AU$6.95AU$7.8613
Mar ’24AU$7.58
AU$7.64
+0.8%
5.7%AU$8.50AU$6.95AU$7.5213
Feb ’24AU$7.80
AU$7.65
-1.9%
5.6%AU$8.35AU$6.90AU$8.0013
Jan ’24AU$7.75
AU$7.56
-2.5%
5.6%AU$8.54AU$6.90AU$7.3913
Dec ’23AU$7.23
AU$7.58
+4.9%
5.3%AU$8.54AU$6.90AU$7.7113
Nov ’23AU$6.85
AU$7.59
+10.9%
5.3%AU$8.27AU$6.90AU$7.2313

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

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