We’ve recently updated our valuation analysis.

FirstRand Valuation

Is FSR 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 FSR?

Other financial metrics that can be useful for relative valuation.

FSR 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 Ratio1.3x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.3x
REM Remgro
6.1x-2.6%R80.5b
INL Investec Group
6.4x-9.8%R94.8b
8591 ORIX
9.2x12.4%JP¥2.6t
BAJAJFINSV Bajaj Finserv
47.6x26.8%₹2.6t
FSR FirstRand
11.5x8.5%R376.2b

Price-To-Earnings vs Peers: FSR is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (17.3x).


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
Industry Avg.n/a7.0%
n/an/an/a

Price-To-Earnings vs Industry: FSR is expensive based on its Price-To-Earnings Ratio (11.5x) compared to the African Diversified Financial industry average (8x)


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 Ratio11.5x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: FSR is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).


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 (ZAR67.09) is trading above our estimate of fair value (ZAR49.73)

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


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
CurrentR67.09
R72.55
+8.1%
8.0%R80.00R60.00n/a9
Nov ’23R64.19
R72.10
+12.3%
7.4%R78.00R60.00n/a9
Oct ’23R60.74
R72.33
+19.1%
7.7%R78.00R60.00n/a9
Sep ’23R63.91
R73.44
+14.9%
8.0%R80.00R60.00n/a9
Aug ’23R65.51
R73.39
+12.0%
8.5%R80.00R60.00n/a9
Jul ’23R62.37
R74.17
+18.9%
8.6%R81.00R60.00n/a9
Jun ’23R70.71
R73.94
+4.6%
8.8%R81.00R60.00n/a9
May ’23R68.49
R73.00
+6.6%
9.2%R81.00R60.00n/a10
Apr ’23R77.06
R71.80
-6.8%
8.6%R81.00R60.00n/a10
Mar ’23R68.06
R68.40
+0.5%
7.6%R77.00R60.00n/a10
Feb ’23R62.03
R66.06
+6.5%
6.5%R73.00R60.00n/a9
Jan ’23R60.80
R65.67
+8.0%
7.0%R73.00R60.00n/a9
Dec ’22R57.48
R65.67
+14.2%
7.0%R73.00R60.00n/a9
Nov ’22R58.01
R65.56
+13.0%
6.6%R73.00R60.00R64.199
Oct ’22R64.15
R65.33
+1.8%
7.1%R73.00R58.00R60.749
Sep ’22R61.95
R60.78
-1.9%
9.2%R70.00R53.00R63.919
Aug ’22R54.36
R59.13
+8.8%
8.7%R70.00R53.00R65.518
Jul ’22R53.21
R59.06
+11.0%
9.2%R71.00R53.00R62.378
Jun ’22R56.76
R56.44
-0.6%
9.5%R68.00R50.00R70.718
May ’22R51.04
R56.61
+10.9%
9.0%R68.00R50.00R68.499
Apr ’22R51.10
R56.61
+10.8%
9.0%R68.00R50.00R77.069
Mar ’22R51.56
R54.33
+5.4%
10.6%R66.00R44.00R68.069
Feb ’22R47.10
R53.60
+13.8%
11.8%R66.00R43.00R62.0310
Jan ’22R51.04
R52.95
+3.7%
12.1%R66.00R43.00R60.8010
Dec ’21R46.68
R50.65
+8.5%
12.3%R61.00R40.00R57.4810
Nov ’21R37.60
R49.20
+30.9%
13.4%R61.00R40.00R58.0110

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


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