FirstRand Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: FSR (ZAR80.27) is trading above our estimate of fair value (ZAR53.07)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FSR. This is calculated by dividing FSR's market cap by their current earnings.
What is FSR's PE Ratio?
PE Ratio11.8x
EarningsR38.19b
Market CapR449.81b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FSR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65.3x
REM Remgro
108.4xn/aR88.3b
INL Investec Group
8.1x11.0%R116.3b
8591 ORIX
9.6x5.7%JP¥3.9t
JIOFIN Jio Financial Services
135.1xn/a₹2.2t
FSR FirstRand
11.8x10.6%R449.8b

Price-To-Earnings vs Peers: FSR is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (65.3x).


Price to Earnings Ratio vs Industry

How does FSR's PE Ratio compare vs other companies in the African Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FSR 11.8xIndustry Avg. 8.6xNo. of Companies8PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FSR is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the African Diversified Financial industry average (8.6x).


Price to Earnings Ratio vs Fair Ratio

What is FSR'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.

FSR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: FSR is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).


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 FSR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR80.27
R87.63
+9.2%
3.5%R93.00R84.00n/a10
Nov ’25R77.49
R88.17
+13.8%
3.3%R93.00R85.00n/a8
Oct ’25R82.09
R88.42
+7.7%
2.8%R93.00R85.00n/a8
Sep ’25R85.98
R84.52
-1.7%
8.1%R93.00R72.63n/a8
Aug ’25R80.81
R81.68
+1.1%
9.3%R93.00R69.00n/a9
Jul ’25R77.62
R76.99
-0.8%
7.8%R86.20R69.00n/a9
Jun ’25R65.00
R75.68
+16.4%
6.8%R85.00R69.00n/a9
May ’25R65.16
R75.45
+15.8%
8.0%R87.00R69.00n/a9
Apr ’25R61.73
R75.91
+23.0%
7.7%R87.00R70.00n/a10
Mar ’25R65.54
R77.00
+17.5%
8.7%R91.00R70.00n/a9
Feb ’25R66.26
R77.45
+16.9%
8.4%R91.00R70.00n/a9
Jan ’25R73.51
R75.82
+3.1%
8.1%R86.00R68.00n/a9
Dec ’24R67.98
R75.26
+10.7%
7.4%R86.00R68.00R76.949
Nov ’24R62.23
R74.91
+20.4%
7.7%R86.00R68.00R77.499
Oct ’24R63.86
R76.02
+19.0%
7.0%R86.00R69.00R82.099
Sep ’24R73.64
R76.48
+3.9%
7.4%R85.00R66.00R85.989
Aug ’24R72.92
R75.15
+3.1%
7.7%R85.00R66.00R80.819
Jul ’24R68.50
R74.75
+9.1%
7.3%R84.00R66.00R77.629
Jun ’24R61.18
R73.82
+20.7%
8.5%R84.00R65.00R65.009
May ’24R64.36
R74.23
+15.3%
8.9%R84.00R65.00R65.169
Apr ’24R60.38
R73.86
+22.3%
8.7%R84.00R65.00R61.739
Mar ’24R66.83
R73.01
+9.2%
6.9%R81.00R64.00R65.549
Feb ’24R65.98
R72.78
+10.3%
6.8%R80.06R64.00R66.269
Jan ’24R62.12
R73.57
+18.4%
6.1%R80.06R66.50R73.518
Dec ’23R60.79
R72.55
+19.3%
8.0%R80.00R60.00R67.989

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies