FirstRand Valuation

Q: What is the Fair Price of FAND.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FAND.Y ($42.81) is trading below our estimate of [[fair value]] ($49.96)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: FAND.Y ($42.81) is trading below our estimate of fair value ($49.96)

Significantly Below Fair Value: FAND.Y is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FAND.Y?

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

The above table shows the Price to Earnings ratio for FAND.Y. This is calculated by dividing FAND.Y's market cap by their current earnings.
What is FAND.Y's PE Ratio?
PE Ratio	11.2x
Earnings	R38.19b
Market Cap	R428.85b

FAND.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does FAND.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for FAND.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.9x
VOYA Voya Financial	11.8x	14.5%	US$7.7b
APO Apollo Global Management	17.1x	6.3%	US$95.2b
CPAY Corpay	25.3x	15.5%	US$25.7b
GPN Global Payments	21.4x	10.9%	US$29.2b
FAND.Y FirstRand	11.2x	10.5%	US$428.9b

Price-To-Earnings vs Peers: FAND.Y is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

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

4 Companies	Price / Earnings	Estimated Growth	Market Cap
FOA Finance of America Companies	1.3x	-143.9%	US$544.53m
SHFS SHF Holdings	2.9x	n/a	US$17.18m
PMIR PMI Group	1.2x	n/a	US$6.80m
ACGX Alliance Creative Group	1.8x	n/a	US$376.68k

No more companies available in this PE range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FAND.Y is good value based on its Price-To-Earnings Ratio (11.2x) compared to the US Diversified Financial industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is FAND.Y'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.

FAND.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FAND.Y'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.

Discover undervalued companies

Ameriprise Financial

US$54.6b

Provides various financial products and services to individual and institutional clients in the United States and internationally.

AMP

US$562.56

0.5%

60.5%

Investor

SEK 905.1b

A private equity firm specializing in mature, middle market, buyouts and growth capital investments.

IVSB.F

SEK 26.69

-4.0%

32.1%

FinVolution Group

US$1.6b

Operates in the online consumer finance industry.

FINV

US$6.23

4.9%

37.2%