Challenger Limited

OTCPK:CFIG.F Stock Report

Market Cap: US$2.9b

Challenger Valuation

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

Below Fair Value: CFIG.F ($4.24) is trading below our estimate of fair value ($5.59)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CFIG.F?

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

The above table shows the Price to Earnings ratio for CFIG.F. This is calculated by dividing CFIG.F's market cap by their current earnings.
What is CFIG.F's PE Ratio?
PE Ratio32.4x
EarningsAU$134.50m
Market CapAU$4.35b

Price to Earnings Ratio vs Peers

How does CFIG.F's PE Ratio compare to its peers?

The above table shows the PE ratio for CFIG.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.9x
VOYA Voya Financial
11.9x15.0%US$7.7b
ALRS Alerus Financial
174.4x73.4%US$544.8m
NEWT NewtekOne
8.9x16.7%US$363.0m
NMIH NMI Holdings
8.5x4.8%US$3.0b
CFIG.F Challenger
32.4x21.1%US$4.4b

Price-To-Earnings vs Peers: CFIG.F is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the peer average (8.9x).

Price to Earnings Ratio vs Industry

How does CFIG.F's PE Ratio compare vs other companies in the US Diversified Financial Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FOA Finance of America Companies
1.2x-143.9%US$453.70m
PMIR PMI Group
1.2xn/aUS$6.80m
ACGX Alliance Creative Group
2xn/aUS$491.32k
No more companies available in this PE range
CFIG.F 32.4xIndustry Avg. 17.8xNo. of Companies12PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CFIG.F is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the US Diversified Financial industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is CFIG.F'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.

CFIG.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CFIG.F'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?

Analyst Forecast: Insufficient data to show price forecast.

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