We’ve recently updated our valuation analysis.

Absa Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ABG 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.5x
NED Nedbank Group
8.8x6.3%R112.8b
CPI Capitec Bank Holdings
22.2x18.0%R206.3b
SBK Standard Bank Group
10.2x7.5%R296.3b
SFN Sasfin Holdings
4.9xn/aR892.4m
ABG Absa Group
8.4x7.2%R168.5b


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
n/an/an/a


Price to Earnings Ratio vs Fair Ratio

What is ABG'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.

ABG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio9.8x

Price-To-Earnings vs Fair Ratio: ABG is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.8x).


Share Price vs Fair Value

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


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 ABG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR202.94
R227.43
+12.1%
6.0%R252.89R203.00n/a9
Feb ’24R205.74
R227.43
+10.5%
6.0%R252.89R203.00n/a9
Jan ’24R193.90
R224.10
+15.6%
6.9%R252.89R196.00n/a9
Dec ’23R185.40
R221.33
+19.4%
5.5%R237.00R196.00n/a9
Nov ’23R197.23
R216.67
+9.9%
5.5%R237.00R196.00n/a9
Oct ’23R176.63
R215.33
+21.9%
5.0%R237.00R196.00n/a9
Sep ’23R178.10
R215.33
+20.9%
5.0%R237.00R196.00n/a9
Aug ’23R169.76
R206.00
+21.3%
8.2%R231.00R174.00n/a9
Jul ’23R154.70
R207.11
+33.9%
7.9%R231.00R174.00n/a9
Jun ’23R179.40
R205.67
+14.6%
7.7%R231.00R174.00n/a9
May ’23R171.84
R202.50
+17.8%
8.4%R231.00R174.00n/a10
Apr ’23R191.00
R198.70
+4.0%
7.5%R220.00R174.00n/a10
Mar ’23R178.21
R186.50
+4.7%
7.2%R210.00R165.00n/a10
Feb ’23R169.15
R177.56
+5.0%
5.4%R200.00R165.00R205.749
Jan ’23R152.55
R171.33
+12.3%
4.7%R187.00R160.00R193.909
Dec ’22R138.47
R170.56
+23.2%
5.3%R187.00R158.00R185.409
Nov ’22R140.00
R170.56
+21.8%
5.1%R186.00R158.00R197.239
Oct ’22R153.24
R170.00
+10.9%
5.3%R186.00R158.00R176.639
Sep ’22R153.06
R166.83
+9.0%
3.9%R175.00R158.00R178.109
Aug ’22R136.43
R157.06
+15.1%
5.7%R167.00R135.00R169.768
Jul ’22R134.72
R152.75
+13.4%
9.5%R167.00R123.00R154.708
Jun ’22R141.99
R143.50
+1.1%
6.7%R152.00R123.00R179.408
May ’22R122.45
R139.89
+14.2%
6.8%R152.00R123.00R171.849
Apr ’22R124.17
R139.33
+12.2%
6.7%R152.00R123.00R191.009
Mar ’22R123.46
R137.11
+11.1%
5.9%R152.00R123.00R178.219
Feb ’22R112.80
R133.40
+18.3%
8.0%R152.00R113.00R169.1510


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