Sanlam Limited

JSE:SLM Stock Report

Market Cap: R176.7b

Sanlam Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: SLM (ZAR85.73) is trading above our estimate of fair value (ZAR56.62)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SLM. This is calculated by dividing SLM's market cap by their current earnings.
What is SLM's PE Ratio?
PE Ratio10.6x
EarningsR16.64b
Market CapR176.66b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SLM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12x
DSY Discovery
18.1x14.6%R129.4b
MTM Momentum Group
10.8x14.5%R41.4b
OMU Old Mutual
6.8x2.7%R54.2b
CLI Clientèle
12.1xn/aR4.0b
SLM Sanlam
10.6x2.5%R176.7b

Price-To-Earnings vs Peers: SLM is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (12x).

Price to Earnings Ratio vs Industry

How does SLM's PE Ratio compare vs other companies in the African Insurance Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SLM 10.6xIndustry Avg. 5.7xNo. of Companies10PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SLM is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the African Insurance industry average (5.7x).

Price to Earnings Ratio vs Fair Ratio

What is SLM'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.

SLM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ratio11.4x

Price-To-Earnings vs Fair Ratio: SLM is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.4x).

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 SLM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR85.73
R89.86
+4.8%
12.4%R107.00R73.48n/a7
Dec ’25R88.10
R89.86
+2.0%
12.4%R107.00R73.48n/a7
Nov ’25R87.77
R89.72
+2.2%
12.3%R107.00R73.48n/a7
Oct ’25R86.60
R89.69
+3.6%
12.3%R107.00R73.24n/a7
Sep ’25R88.89
R85.24
-4.1%
10.7%R100.00R73.24n/a7
Aug ’25R80.46
R82.61
+2.7%
8.9%R94.00R73.24n/a6
Jul ’25R82.67
R80.78
-2.3%
7.9%R90.00R73.24n/a6
Jun ’25R70.84
R80.78
+14.0%
7.9%R90.00R73.24n/a6
May ’25R68.04
R80.48
+18.3%
8.3%R90.00R73.24n/a6
Apr ’25R69.39
R80.48
+16.0%
8.3%R90.00R73.24n/a6
Mar ’25R74.33
R79.37
+6.8%
8.5%R89.00R71.00n/a5
Feb ’25R72.13
R77.43
+7.3%
6.5%R85.00R70.29n/a5
Jan ’25R72.80
R77.34
+6.2%
7.3%R85.00R70.29n/a5
Dec ’24R68.30
R77.34
+13.2%
7.3%R85.00R70.29R88.105
Nov ’24R65.84
R75.33
+14.4%
8.8%R82.00R66.41R87.775
Oct ’24R65.67
R72.95
+11.1%
13.7%R82.00R56.35R86.605
Sep ’24R68.64
R68.30
-0.5%
13.8%R78.00R56.35R88.894
Aug ’24R65.91
R70.45
+6.9%
14.2%R78.00R56.35R80.463
Jul ’24R58.35
R69.45
+19.0%
13.4%R77.00R56.35R82.673
Jun ’24R52.69
R69.45
+31.8%
13.4%R77.00R56.35R70.843
May ’24R56.43
R71.47
+26.7%
13.0%R79.00R58.41R68.043
Apr ’24R56.37
R71.47
+26.8%
13.0%R79.00R58.41R69.393
Mar ’24R59.89
R69.81
+16.6%
13.6%R77.00R56.44R74.333
Feb ’24R57.91
R70.81
+22.3%
14.5%R80.00R56.44R72.133
Jan ’24R48.72
R69.47
+42.6%
17.5%R80.00R52.40R72.803
Dec ’23R53.17
R69.47
+30.7%
17.5%R80.00R52.40R68.303

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:18
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sanlam Limited is covered by 19 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Francois Du ToitAnchor Stockbrokers Proprietary Limited
Adrienne DamantAvior Capital Markets
Robert RiceBarclays