Nedbank Group (NED.JO)
Financials · JSE · South Africa
Fundamentals
Valuation and ratings
Nedbank Group trades at R273.07, close to the R249.56 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 33 out of 100, which is little in the way of a 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 16.5 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 Nedbank Group
Nedbank Group Limited, together with its subsidiaries, provides various wholesale and retail banking services in South Africa, rest of Africa, Europe, Asia, the United States, and internationally. The company operates through Nedbank Corporate and Investment Banking; Nedbank Business and Commercial Banking; Nedbank Personal and Private Banking; Nedbank Africa Regions; and Centre segments. It offers lending products, advisory services, leverage financing, trading, brokering, structuring, hedging, and client coverage; corporate finance advisory, innovative financial products and services, customised transactional banking, asset management, and commercial property finance; transactional accounts, home loans, vehicle and asset finance, card services, personal loans, insurance and investments; Wealth services include trust and estate planning, stockbroking, and financial planning, as well as tailored banking and services; and franchising and manufacturing industries and public sector. The company also provides life and non-life insurance; asset management; trust and estate planning, stockbroking, and financial planning wealth management services. In addition, it offers capital management, funding, and liquidity risk management. The company was formerly known as Nedcor Limited and changed its name to Nedbank Group Limited in 2005. Nedbank Group Limited was founded in 1831 and is headquartered in Sandton, South Africa.
NED.JO passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Nedbank Group (NED.JO) undervalued?
Against our discounted cash flow estimate of R249.56, NED.JO at R273.07 is 9% 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 NED.JO's P/E ratio?
NED.JO trades at 16.5 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.