Discovery Ltd (DSY.JO)
Financials · JSE · South Africa
Fundamentals
Valuation and ratings
Discovery Ltd trades at R257.62, which is 18% above the R210.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 70 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 16.4 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 Discovery Ltd
Discovery Limited provides various insurance products and services primarily in South Africa and the United Kingdom. It operates through SA Health, SA Life, SA Invest, SA Insure, SA Bank, UK Health, UK Life, and All Other segments. The company offers health, life, car, travel, business, and home insurance products; motor, building, household content, and portable possessions insurance products; private medical insurance products; and commercial short-term risk insurance products. It also provides pension and provident fund solutions; managed care services; financial solutions; investment products; retail banking solutions, including deposits and loans and advances; and Vitality, which offers health and lifestyle benefits. The company was formerly known as Discovery Holdings Limited and changed its name to Discovery Limited in December 2012. The company was founded in 1992 and is based in Sandton, South Africa.
DSY.JO passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Discovery Ltd (DSY.JO) undervalued?
Against our discounted cash flow estimate of R210.00, DSY.JO at R257.62 is 18% 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 DSY.JO's P/E ratio?
DSY.JO trades at 16.4 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.
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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.