Old Mutual Limited

DB:2KS Stock Report

Market Cap: €2.9b

Old Mutual Valuation

Is 2KS 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 2KS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2KS (€0.65) is trading below our estimate of fair value (€1.21)

Significantly Below Fair Value: 2KS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2KS?

Key metric: As 2KS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2KS. This is calculated by dividing 2KS's market cap by their current earnings.
What is 2KS's PE Ratio?
PE Ratio7x
EarningsR7.95b
Market CapR55.33b

Price to Earnings Ratio vs Peers

How does 2KS's PE Ratio compare to its peers?

The above table shows the PE ratio for 2KS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
WUW Wüstenrot & Württembergische
26.5x34.6%€1.1b
NBG6 NÜRNBERGER Beteiligungs-AG
13.8x38.4%€576.0m
TLX Talanx
10.8x5.0%€20.4b
966 China Taiping Insurance Holdings
7.4x12.6%HK$43.8b
2KS Old Mutual
7x2.7%€55.3b

Price-To-Earnings vs Peers: 2KS is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does 2KS's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2KS 7.0xIndustry Avg. 11.8xNo. of Companies14PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2KS is good value based on its Price-To-Earnings Ratio (7x) compared to the European Insurance industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is 2KS'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.

2KS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio7.1x

Price-To-Earnings vs Fair Ratio: 2KS is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (7.1x).

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 2KS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.65
€0.71
+10.6%
16.1%€0.88€0.52n/a7
Nov ’25€0.61
€0.71
+15.8%
16.1%€0.88€0.52n/a7
Oct ’25€0.67
€0.73
+9.7%
14.4%€0.88€0.52n/a7
Sep ’25€0.63
€0.70
+12.7%
14.7%€0.85€0.50n/a7
Aug ’25€0.58
€0.74
+26.1%
8.1%€0.83€0.64n/a6
Jul ’25€0.60
€0.70
+17.4%
10.9%€0.81€0.59n/a6
Jun ’25€0.53
€0.70
+34.2%
10.9%€0.81€0.59n/a6
May ’25€0.50
€0.71
+43.6%
8.9%€0.82€0.62n/a6
Apr ’25€0.56
€0.72
+29.2%
5.7%€0.79€0.66n/a5
Mar ’25€0.55
€0.73
+32.1%
6.0%€0.79€0.66n/a5
Feb ’25€0.59
€0.73
+23.8%
5.0%€0.79€0.69n/a5
Jan ’25€0.58
€0.73
+25.4%
4.3%€0.78€0.68n/a5
Dec ’24€0.54
€0.73
+34.7%
4.3%€0.78€0.68n/a5
Nov ’24€0.58
€0.74
+28.2%
4.5%€0.80€0.70€0.615
Oct ’24€0.57
€0.72
+24.4%
9.2%€0.79€0.60€0.675
Sep ’24€0.58
€0.72
+22.3%
9.2%€0.79€0.60€0.635
Aug ’24€0.62
€0.66
+6.7%
11.6%€0.76€0.56€0.584
Jul ’24€0.55
€0.66
+21.4%
11.6%€0.76€0.56€0.604
Jun ’24€0.47
€0.66
+40.7%
11.6%€0.76€0.56€0.534
May ’24€0.56
€0.73
+30.0%
13.7%€0.87€0.61€0.504
Apr ’24€0.57
€0.73
+27.7%
13.7%€0.87€0.61€0.564
Mar ’24€0.59
€0.75
+25.2%
16.3%€0.91€0.59€0.554
Feb ’24€0.60
€0.75
+23.2%
16.3%€0.91€0.59€0.594
Jan ’24€0.56
€0.78
+38.6%
16.9%€0.94€0.60€0.584
Dec ’23€0.63
€0.82
+30.9%
16.1%€0.96€0.62€0.544
Nov ’23€0.55
€0.81
+47.1%
18.1%€0.96€0.58€0.584

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

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