Australian Foundation Investment Company Ltd (AFI) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Australian Foundation Investment Company Ltd stock A$5.70, price A$6.92, that is 17.6% below the price, quality 70 out of 100. Rating: overvalued. Calculated from audited financials with 2 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range A$5.71 – A$7.06 · fair‑value band A$4.27 – A$7.12 · the A$6.92 price screens above the A$5.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Australian Foundation Investment Company Limited is a publicly owned investment manager. The firm invests in the public equity markets of Australia and New Zealand. It invests in value stocks of companies. It benchmarks the performance of its portfolio against S&P/ASX 200 Accumulation Index.
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It invests in companies across diversified industries. The firm employs fundamental analysis with a focus on bottom-up research to make its investments. The firm conducts in-house research to make its investments.
Australian Foundation Investment Company Limited was founded in 1928 and is based in Melbourne, Australia.
Stock analysis
Australian Foundation Investment Company Ltd (AFI) currently trades at A$6.92, while our model-based Fair Value estimate is A$5.70, 18% below the price, so the stock looks overvalued today.
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Valuation
How firm this estimate is: it rests on 2 models at a data quality of 96/100, which puts the data coverage at high.
Scenario range: A$4.27 (bear) to A$7.12 (bull), the price of A$6.92 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Australian Foundation Investment Company Ltd reported revenue of A$340M in FY2026 versus A$393M in FY2022, a compound −3.5%/yr. Reported net income was A$293M in FY2026, compounding −5.0%/yr from FY2022.
Key figures
Market cap A$8.6B (≈ $5.9B) Mid · P/E ratio 30.1 · P/S ratio 25.4 · EPS (TTM) A$0.2300 · Dividend yield 3.8% · Net margin 86.1% · Return on equity 3.5% · Return on assets (EBIT) 3.5% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 64 out of 100 (low confidence).
What moves the price
The share trades about 1% below its 52-week high and 13% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at −18%, AFI screens richer than that median.
Fair Value models
BearA$4.27Fair Value A$5.70BullA$7.12
Price A$6.92 · Downside -17.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+3.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.1%
Start year 2021 (pandemic). Over 10 years: +2.0% a year
Revenue growth 24 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+7.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+3.4%
Dividend (yield on the price)3.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.3.4% vs −0.1%, picking up
Profit margin 2002 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.190% → 94%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+13.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Australia: IMF forecast 3.0% a year to 2030, 2.9% from 2016 to 2025) that is about +10.5% a year for the price.
News mood ⓘNews mood, the average tone of recent news (27 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: High margins deliver steady income from a concentrated Australian equity portfolio, yet low returns on equity and close ties to local market swings indicate only modest durable advantage.
Main risk: Passive ETFs with fees of 0.1-0.3 percent could continue to attract Australian equity investors away from higher-fee LICs such as AFIC, pressuring assets under management and margins.
Bull case: AFIC could leverage its concentrated Australian equity portfolio and buyback program at a discount to NTA to retain income-focused investors seeking franked dividends that ETFs cannot fully replicate.
Bear case: Sustained investor migration to low-cost ETFs combined with tighter franking rules could erode AFIC's assets and force higher costs or reduced payouts, diminishing the viability of its closed-end structure.
AFIC has moved to quarterly dividends and plans to keep returning surplus franking credits while buying back shares at a material discount to NTA. Its concentrated portfolio in major Australian equities delivers steady income but ties results closely to local market swings and franking availability. Does the shift to more frequent payouts plus selective buybacks add lasting resilience or simply lock in higher reliance on those credits?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Asset Management · 588 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score70 · Top 25%
Fair Value upside−17.6% · Below median
Profitability
Return on equity (12 months)3.5% · Below median
Return on assets3.0% · Below median
Net margin (12 months)86.1% · Top 25%
Operating margin (12 months)93.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)8.9% · Above median
Dividend yield (12 months)3.8% · Below median
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Asset Management median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Australian Foundation Investment Company Ltd Fair Value". https://www.fairvalue-calculator.com/stock/AFI
Frequently asked questions
Is Australian Foundation Investment Company Ltd (AFI) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of A$5.70 versus a price of A$6.92, about 18% lower (overvalued).
What is the fair value of AFI?
Our model-based fair value for Australian Foundation Investment Company Ltd is A$5.70 (as of Nov 6, 2026), built from audited fundamentals. The current price: A$6.92.
What is the quality score of AFI?
Australian Foundation Investment Company Ltd has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Australian Foundation Investment Company Ltd (AFI)?
Our model-based price target is the fair value of A$5.70 (as of Nov 6, 2026) from 2 valuation models. Cautious scenario A$4.27, optimistic scenario A$7.12. It is a calculation from audited fundamentals, not an analyst target.
What is the Australian Foundation Investment Company Ltd stock forecast for 2026?
Our models put fair value at A$5.70, about 18% lower versus a price of A$6.92 (overvalued). Cautious scenario A$4.27, optimistic scenario A$7.12. The calculation is refreshed regularly with new filings.
What is the revenue of Australian Foundation Investment Company Ltd (AFI)?
Australian Foundation Investment Company Ltd reported trailing-twelve-month revenue of about A$340M (latest available figure, as of Nov 6, 2026).
Does Australian Foundation Investment Company Ltd pay a dividend?
Australian Foundation Investment Company Ltd currently shows a dividend yield of 3.83% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Australian Foundation Investment Company Ltd (AFI) and when is the ex-dividend date?
Australian Foundation Investment Company Ltd pays a dividend of A$0.265 per share a year, a dividend yield of 3.8%. The last ex-dividend date was Oct 15, 2026. A dividend has been paid every year since at least 1993. The payout ratio is 115% of earnings. Free cash flow covers the dividend 0.85 times. Our assessment: Pays more than it earns. The company pays out more in dividends than it earns, and free cash flow clearly does not cover the dividend either. It may need to be cut unless profits recover.
What growth is priced into Australian Foundation Investment Company Ltd (AFI)?
For today's price to be fair in a discounted-cash-flow model, Australian Foundation Investment Company Ltd would have to grow free cash flow by +13.8 % per year for five years (discount rate 8.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.1 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of AFI use?
Our models discount Australian Foundation Investment Company Ltd at 8.3 %: a base by market capitalisation (mid), damped by beta 0.41, country premium for Australia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Australian Foundation Investment Company Ltd that is +13.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.3 %) and the same formula as our fair value.
How much growth has Australian Foundation Investment Company Ltd (AFI) delivered so far?
Over the past 5 years revenue at Australian Foundation Investment Company Ltd grew +5.1 % a year. The price currently implies free-cash-flow growth of +13.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Australian Foundation Investment Company Ltd (AFI) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Australian Foundation Investment Company Ltd (+13.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Australian Foundation Investment Company Ltd (AFI)?
The free-cash-flow yield on the price is 3.19 %: that much free cash flow Australian Foundation Investment Company Ltd produces per unit of market value. When it exceeds the discount rate of our models (8.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Australian Foundation Investment Company Ltd (AFI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Australian Foundation Investment Company Ltd it is A$5.70 per share (as of Nov 6, 2026), against a price of A$6.92. It is the blended result of 2 valuation models in 2 families (Multiples, Asset-Based).
Is Australian Foundation Investment Company Ltd stock overvalued or undervalued in 2026?
As of Nov 6, 2026, AFI trades above its calculated fair value: price A$6.92, fair value A$5.70, a gap of about −18% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AFI?
No. The price is what the market pays today (A$6.92); the fair value is what the company's own numbers justify (A$5.70). For Australian Foundation Investment Company Ltd the two are A$1.22 per share apart. That gap is exactly why we show both numbers side by side.
How much is Australian Foundation Investment Company Ltd worth?
The market values Australian Foundation Investment Company Ltd at about A$8.6B (market capitalisation, as of Nov 6, 2026). Per share that is A$6.92; our models calculate a fair value of A$5.70 per share.
What do the bullish and bearish scenarios say about AFI?
Our models span a range for Australian Foundation Investment Company Ltd: cautious scenario A$4.27, base A$5.70, optimistic A$7.12 per share (as of Nov 6, 2026, price A$6.92). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AFI?
Australian Foundation Investment Company Ltd trades at a price-to-earnings ratio of 30.1 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$5.70 is built from several models across several years. Other multiples: P/B 1.1, P/S 25.4, EV/EBITDA 26.9.
How solid is the balance sheet of Australian Foundation Investment Company Ltd (AFI)?
Balance-sheet figures for Australian Foundation Investment Company Ltd (as of Nov 6, 2026): return on equity 3.5%, debt of 0.01 per unit of equity. They feed the Quality Score of 70/100, which measures business quality independently of the share price.
How far is AFI from its 52-week high?
Australian Foundation Investment Company Ltd trades at A$6.92, about 1% below its 52-week high of A$6.99 and 13% above the low of A$6.11 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of A$5.70 is for.
Which stocks are comparable to Australian Foundation Investment Company Ltd?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Asset Management Ltd, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Australian Foundation Investment Company Ltd stock attractive at the current price?
The data as of Nov 6, 2026: price A$6.92, calculated fair value A$5.70 (−18%), Quality Score 70/100, from 2 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AFI calculated?
We run Australian Foundation Investment Company Ltd through 2 models from 2 families: Multiples, Asset-Based. Every model gets the same audited fundamentals; the fair value of A$5.70 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Australian Foundation Investment Company Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Australian Foundation Investment Company Ltd (AFI)?
The closing price on Nov 6, 2026 was A$6.92. Our model-based fair value is A$5.70, about 18% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Australian Foundation Investment Company Ltd right now?
Solid but not exceptional quality (70/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Australian Foundation Investment Company Ltd (AFI) come from?
Earnings per share at Australian Foundation Investment Company Ltd grew −0.3 % a year from 2015 to 2026. Broken into its drivers: revenue per share +0.5 %, EBIT margin −0.9 %, tax rate −1.0 %, residual (interest, one-offs) +1.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Australian Foundation Investment Company Ltd
How large is the market capitalisation of Australian Foundation Investment Company Ltd (AFI)?
The market capitalisation of Australian Foundation Investment Company Ltd is A$8.6B (≈ $5.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Australian Foundation Investment Company Ltd (AFI)?
The price-to-sales ratio of Australian Foundation Investment Company Ltd is 25.4 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Australian Foundation Investment Company Ltd (AFI)?
Earnings per share at Australian Foundation Investment Company Ltd are A$0.2300 (price ÷ EPS = P/E 30.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Australian Foundation Investment Company Ltd (AFI)?
The dividend yield of Australian Foundation Investment Company Ltd is 3.8% (payout 115%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Australian Foundation Investment Company Ltd (AFI)?
The net margin of Australian Foundation Investment Company Ltd is 86.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Australian Foundation Investment Company Ltd (AFI)?
The return on equity (ROE) of Australian Foundation Investment Company Ltd is 3.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Australian Foundation Investment Company Ltd (AFI)?
On an EBIT basis the return on assets of Australian Foundation Investment Company Ltd is 3.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Australian Foundation Investment Company Ltd (AFI)?
The operating margin of Australian Foundation Investment Company Ltd is 93.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Australian Foundation Investment Company Ltd (AFI)?
Revenue at Australian Foundation Investment Company Ltd is growing +8.9% versus a year earlier (3y avg −0.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Australian Foundation Investment Company Ltd (AFI)?
Earnings per share at Australian Foundation Investment Company Ltd are growing +12.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Australian Foundation Investment Company Ltd (AFI) hold?
Australian Foundation Investment Company Ltd holds more cash than debt, A$89.5M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026