Capitec Bank Holdings Valuation

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

Below Fair Value: CPIP (ZAR102.3) is trading above our estimate of fair value (ZAR47.82)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CPIP. This is calculated by dividing CPIP's market cap by their current earnings.
What is CPIP's PE Ratio?
PE Ratio	31.7x
Earnings	R12.29b
Market Cap	R389.08b

CPIP 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	1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPIP 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	8.5x
SBK Standard Bank Group	9x	9.4%	R398.0b
NED Nedbank Group	8.5x	9.5%	R137.2b
ABG Absa Group	7.6x	14.9%	R144.3b
1010 Riyad Bank	9x	5.2%	ر.س78.0b
CPIP Capitec Bank Holdings	31.7x	16.3%	R389.1b

Price-To-Earnings vs Peers: CPIP is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

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

6 Companies	Price / Earnings	Estimated Growth	Market Cap

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CPIP is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the African Banks industry average (5.1x).

Price to Earnings Ratio vs Fair Ratio

What is CPIP'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.

CPIP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.7x
Fair PE Ratio	12.5x

Price-To-Earnings vs Fair Ratio: CPIP is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).

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.