ASX (ASX.AX)
Financials · ASX · Australia
Fundamentals
Valuation and ratings
ASX trades at A$56.50, close to the A$55.14 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 80 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 20.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About ASX
ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. The company provides regulated framework for entities to raise capital and source liquidity; education programs, research and insights, investor access and peer group networking; distribution facility for quoted exchange traded funds (ETFs) and debt securities. It is also involved in the trading of futures and options on interest rate, equity index, agricultural and energy products, and options over individual securities; cash market trading of equities, warrants, ETFs, and debt securities; and clearing of exchange-traded derivatives, and over-the-counter interest rate and equity derivatives. In addition, it offers information services, including pricing and trading data; technical services, such as market access, connectivity, hosting and co-location services; central counterparty clearing and settlement services for equities; settlement, depository, and registry services for debt securities; and payment platform for high value payments, electricity providers, and property transactions. The company was incorporated in 1987 and is based in Sydney, Australia.
ASX.AX passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is ASX (ASX.AX) undervalued?
Against our discounted cash flow estimate of A$55.14, ASX.AX at A$56.50 is 2% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ASX.AX's P/E ratio?
ASX.AX trades at 20.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ASX.AX, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.