Nedbank Group Limited

NMSE:NBK Stock Report

Market Cap: R137.7b

Nedbank Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: NBK (ZAR294.9) is trading above our estimate of fair value (ZAR49.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NBK. This is calculated by dividing NBK's market cap by their current earnings.
What is NBK's PE Ratio?
PE Ratio8.7x
EarningsR15.90b
Market CapR137.73b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NBK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.9x
FNB FirstRand Namibia
7.2xn/aR12.3b
CGP Capricorn Group
6.3xn/aR10.2b
SNO SBN Holdings
5.2x-3.1%R4.7b
2887 Taishin Financial Holding
17.1x8.5%NT$244.2b
NBK Nedbank Group
8.7x10.2%R137.7b

Price-To-Earnings vs Peers: NBK is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (8.9x).

Price to Earnings Ratio vs Industry

How does NBK's PE Ratio compare vs other companies in the African Banks Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NBK 8.7xIndustry Avg. 5.1xNo. of Companies25PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NBK is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the African Banks industry average (5.2x).

Price to Earnings Ratio vs Fair Ratio

What is NBK'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.

NBK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NBK's Price-To-Earnings Fair Ratio for valuation analysis.

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 NBK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR294.90
R318.89
+8.1%
6.2%R348.04R290.00n/a7
Nov ’25R299.69
R316.54
+5.6%
6.2%R348.04R290.00n/a7
Oct ’25R293.77
R316.54
+7.8%
6.2%R348.04R290.00n/a7
Sep ’25R296.69
R310.44
+4.6%
5.0%R332.00R288.00n/a7
Aug ’25R277.35
R284.90
+2.7%
8.6%R312.17R254.00n/a8
Jul ’25R259.79
R272.04
+4.7%
8.9%R311.24R240.00n/a8
Jun ’25R228.48
R267.81
+17.2%
8.0%R308.37R243.00n/a8
May ’25R228.75
R267.81
+17.1%
8.8%R308.37R243.00n/a8
Apr ’25R228.67
R259.09
+13.3%
9.0%R302.46R231.00n/a9
Mar ’25R220.20
R252.85
+14.8%
9.8%R293.00R224.00n/a9
Feb ’25R215.42
R251.63
+16.8%
10.1%R293.00R224.00n/a9
Jan ’25R216.23
R247.23
+14.3%
10.8%R288.45R211.00n/a9
Dec ’24R211.49
R255.51
+20.8%
12.3%R301.09R211.00n/a9
Nov ’24R201.22
R254.22
+26.3%
11.7%R300.00R211.00R299.699
Oct ’24R202.33
R255.77
+26.4%
10.9%R300.00R211.00R293.779
Sep ’24R214.07
R259.22
+21.1%
10.6%R300.00R227.00R296.699
Aug ’24R233.35
R254.01
+8.9%
14.0%R335.17R217.00R277.359
Jul ’24R228.58
R256.00
+12.0%
13.3%R335.17R220.00R259.799
Jun ’24R208.50
R259.08
+24.3%
12.9%R335.17R225.00R228.489
May ’24R211.05
R261.04
+23.7%
12.0%R335.17R227.00R228.759
Apr ’24R216.85
R260.43
+20.1%
12.2%R335.17R227.00R228.679
Mar ’24R233.74
R253.78
+8.6%
7.8%R299.06R233.00R220.209
Feb ’24R234.20
R254.17
+8.5%
7.9%R299.06R233.00R215.429
Jan ’24R212.58
R252.95
+19.0%
7.7%R299.06R235.00R216.239
Dec ’23R208.38
R251.17
+20.5%
5.8%R279.00R235.00R211.499
Nov ’23R216.12
R249.17
+15.3%
4.5%R271.00R235.00R201.229

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

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