Netwealth Group Ltd
NWL: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$55.50 | Ddwx | Qhmxwgnb |
Netwealth’s First-Half Margin Jump Is Unlikely to Be Sustained Into the Second Half
We’ve largely maintained our earnings forecasts for no-moat-rated Netwealth following its strong first-half result. However, the time value of money increases our fair value estimate by 3% to AUD 6.20 per share. At the current market price of AUD 16.75, we continue to believe Netwealth is significantly overvalued. The share price implies a fiscal 2022 price/earnings ratio of 59, versus 22 at our fair value.