Capitec Bank Holdings Limited

JSE:CPI Stock Report

Market Cap: R376.3b

Capitec Bank Holdings Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: CPI (ZAR3248.42) is trading above our estimate of fair value (ZAR1570.55)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CPI. This is calculated by dividing CPI's market cap by their current earnings.
What is CPI's PE Ratio?
PE Ratio30.6x
EarningsR12.29b
Market CapR376.35b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8x
SBK Standard Bank Group
9.1x9.5%R396.3b
NED Nedbank Group
8.5x10.2%R135.2b
ABG Absa Group
7.3x14.4%R137.9b
GFNORTE O Grupo Financiero Banorte. de
7.2x4.1%Mex$402.0b
CPI Capitec Bank Holdings
30.6x16.4%R376.2b

Price-To-Earnings vs Peers: CPI is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the peer average (8x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CPI 30.6xIndustry Avg. 5.2xNo. of Companies24PE0612182430+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CPI is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the African Banks industry average (5.2x).

Price to Earnings Ratio vs Fair Ratio

What is CPI'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.

CPI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.6x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: CPI is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

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 CPI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR3,248.42
R3,191.22
-1.8%
22.3%R4,190.00R1,480.00n/a9
Nov ’25R3,236.50
R2,967.25
-8.3%
25.9%R4,190.00R1,480.00n/a9
Oct ’25R3,084.66
R2,549.40
-17.4%
17.7%R3,010.00R1,480.00n/a9
Sep ’25R2,925.94
R2,549.40
-12.9%
17.7%R3,010.00R1,480.00n/a9
Aug ’25R2,858.02
R2,517.46
-11.9%
16.0%R3,010.00R1,480.00n/a10
Jul ’25R2,655.32
R2,350.47
-11.5%
14.4%R2,659.77R1,480.00n/a10
Jun ’25R2,129.90
R2,319.15
+8.9%
13.8%R2,650.00R1,480.00n/a10
May ’25R2,327.86
R2,216.49
-4.8%
14.4%R2,466.50R1,480.00n/a9
Apr ’25R2,095.79
R2,102.89
+0.3%
13.4%R2,466.50R1,480.00n/a9
Mar ’25R2,050.50
R2,083.22
+1.6%
12.9%R2,466.50R1,480.00n/a9
Feb ’25R1,999.32
R2,076.56
+3.9%
13.0%R2,466.50R1,480.00n/a9
Jan ’25R2,026.36
R1,963.61
-3.1%
13.6%R2,466.50R1,480.00n/a9
Dec ’24R1,954.43
R1,952.89
-0.08%
14.2%R2,500.00R1,480.00n/a9
Nov ’24R1,660.21
R1,940.28
+16.9%
13.8%R2,500.00R1,480.00R3,236.509
Oct ’24R1,716.33
R1,862.05
+8.5%
16.5%R2,500.00R1,400.00R3,084.669
Sep ’24R1,558.10
R1,852.60
+18.9%
16.4%R2,500.00R1,400.00R2,925.949
Aug ’24R1,755.92
R1,859.27
+5.9%
16.6%R2,500.00R1,400.00R2,858.029
Jul ’24R1,567.83
R1,849.70
+18.0%
16.0%R2,500.00R1,400.00R2,655.329
Jun ’24R1,362.49
R1,881.66
+38.1%
15.1%R2,422.64R1,400.00R2,129.909
May ’24R1,592.87
R1,943.24
+22.0%
11.5%R2,422.64R1,605.00R2,327.869
Apr ’24R1,687.69
R2,005.82
+18.9%
13.4%R2,591.69R1,640.00R2,095.799
Mar ’24R1,762.23
R2,066.74
+17.3%
15.8%R2,650.00R1,640.00R2,050.509
Feb ’24R1,819.19
R2,066.74
+13.6%
15.8%R2,650.00R1,640.00R1,999.329
Jan ’24R1,858.57
R2,108.96
+13.5%
15.6%R2,650.00R1,640.00R2,026.368
Dec ’23R1,836.31
R2,086.75
+13.6%
14.4%R2,650.00R1,640.00R1,954.438
Nov ’23R1,906.55
R2,065.25
+8.3%
13.6%R2,650.00R1,640.00R1,660.218

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies