Sanlam Ltd (SLM) fair value: what the stock is really worth
As of Nov 2, 2026: fair value (intrinsic value) of Sanlam Ltd stock ZAR 71.05, price ZAR 86.29, that is 17.7% below the price, quality 49 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range R37.42 – R101.06 · fair‑value band R46.14 – R96.04 · the R86.29 price screens above the R71.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Sanlam Limited provides various financial services in South Africa, Pan-Africa, Asia, and internationally. The company operates through Sanlam Life and Savings; Pan-Africa; Asia; Sanlam Investments; and Santam segments.
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It offers life, disability, severe illness, income protection, funeral, credit life, health solutions, and cancer coverage; and corporate insurance solutions, including group risk, life, disability, severe and critical illness, and funeral insurance.
The company also provides financial planning services; retirement solutions, such as saving for retirement, retirement preservation, retirement fund members, and two-pot retirement; investments for education planning, unit trusts, and tax-free savings; credit solutions, such as personal and home loans, online shopping credit, and same day express loan; and Sanlam reality programs.
In addition, it offers consulting and advisory; health solutions comprising wellness, employee assistance programs, occupational health programme, primary healthcare, and onsite clinics; individual health solutions which includes medical aid, gap cover, and primary care; business assurance and commercial insurance; medium, small and micro enterprises development services, such as access to funding, business skills, development support, financial solutions, and access to markets.
The company serves individual and institutional clients, as well as entry-level, middle-income market, and high net worth clients. Sanlam Limited was incorporated in 1918 and is headquartered in Bellville, South Africa.
Stock analysis
Sanlam Ltd (SLM) currently trades at R86.29, while our model-based Fair Value estimate is R71.05, 17.7% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of R65.65 per share, and 1 of the 6 models we run sit above the R86.29 price.
Bear case: the Asset-Based group reads lowest at R29.68, and 5 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: R46.14 (bear) to R96.04 (bull), the price of R86.29 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 49/100 (below-average quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Sanlam Ltd reported revenue of 289B ZAR in FY2025 versus 192B ZAR in FY2021, a compound +10.8%/yr. Reported net income was 15.9B ZAR in FY2025, compounding +13.9%/yr from FY2021.
Key figures
Market cap 183B ZAR Large · P/E ratio 9.7 · P/S ratio 0.79 · EPS (TTM) R8.94 · Dividend yield 5.6% · Net margin 8.2% · Return on equity 19.9% · Return on assets (EBIT) 1.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 65 out of 100 (low confidence).
What moves the price
The share trades about 15% below its 52-week high and 12% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −40% fair-value upside, at −18%, SLM screens cheaper than that median.
Fair Value models
BearR46.14Fair Value R71.05BullR96.04
Price R86.29 · Downside -17.7%
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. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (3.43 ZAR per share) are deliberately not added.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.82/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+26.7%
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.
+38.0%
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.
+19.6%
Start year 2020 (pandemic). Over 10 years: +13.0% a year
Revenue growth 23 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.
+33.1%
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What shareholders gained per year (last 5 years), in ZAR ⓘ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. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+22.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.1%
Dividend (yield on the price)5.6%
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.17.1% vs 5.0%, picking up
Profit margin 2019 to 2025 ⓘ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.8% → 9%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less 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).
+4.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about +1.5% a year for the price.
News mood ⓘNews mood, the average tone of recent news (11 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.
Price, fair value, quality and upside side by side.
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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.Insurance - Life · 77 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score49 · Below median
Fair Value upside−17.7% · Above median
Profitability
Return on equity (12 months)19.9% · Top 25%
Return on assets1.2% · Above median
Net margin (12 months)8.2% · Below median
Operating margin (12 months)42.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−11.3% · Bottom 25%
Dividend yield (12 months)5.6% · Top 25%
Balance sheet
Debt / equity0.13× · Lowest 25%
Valuation Multiplesvs Insurance - Life 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). "Sanlam Ltd Fair Value". https://www.fairvalue-calculator.com/stock/SLM.JSE
Frequently asked questions
Is Sanlam Ltd (SLM) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of R71.05 versus a price of R86.29, about 18% lower (overvalued).
What is the fair value of SLM?
Our model-based fair value for Sanlam Ltd is R71.05 (as of Nov 1, 2026), built from audited fundamentals. The current price: R86.29.
What is the quality score of SLM?
Sanlam Ltd has a Quality Score of 49/100. 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 Sanlam Ltd (SLM)?
Our model-based price target is the fair value of R71.05 (as of Nov 1, 2026) from 6 valuation models. Cautious scenario R46.14, optimistic scenario R96.04. It is a calculation from audited fundamentals, not an analyst target.
What is the Sanlam Ltd stock forecast for 2026?
Our models put fair value at R71.05, about 18% lower versus a price of R86.29 (overvalued). Cautious scenario R46.14, optimistic scenario R96.04. The calculation is refreshed regularly with new filings.
What is the revenue of Sanlam Ltd (SLM)?
Sanlam Ltd reported trailing-twelve-month revenue of about 232B ZAR (latest available figure, as of Nov 1, 2026).
Does Sanlam Ltd pay a dividend?
Sanlam Ltd currently shows a dividend yield of 5.62% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Sanlam Ltd (SLM)?
For today's price to be fair in a discounted-cash-flow model, Sanlam Ltd would have to grow free cash flow by +4.8 % per year for five years (discount rate 11.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.6 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of SLM use?
Our models discount Sanlam Ltd at 11.4 %: a base by market capitalisation (large), damped by beta 0.51, country premium for South Africa. 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 Sanlam Ltd that is +4.8 % per year a year over ten years, using the same discount rate (11.4 %) and the same formula as our fair value.
How much growth has Sanlam Ltd (SLM) delivered so far?
Over the past 5 years revenue at Sanlam Ltd grew +19.6 % a year. The price currently implies +4.8 % per year free-cash-flow growth a 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 Sanlam Ltd (SLM) growing?
The median revenue growth in the sector is +9.6 % a year. That is the yardstick for the growth priced into Sanlam Ltd (+4.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Sanlam Ltd (SLM)?
The free-cash-flow yield on the price is 7.18 %: that much free cash flow Sanlam Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Sanlam Ltd (SLM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sanlam Ltd it is R71.05 per share (as of Nov 1, 2026), against a price of R86.29. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Sanlam Ltd stock overvalued or undervalued in 2026?
As of Nov 1, 2026, SLM trades above its calculated fair value: price R86.29, fair value R71.05, 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 SLM?
No. The price is what the market pays today (R86.29); the fair value is what the company's own numbers justify (R71.05). For Sanlam Ltd the two are R15.24 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sanlam Ltd worth?
The market values Sanlam Ltd at about 183B ZAR (market capitalisation, as of Nov 1, 2026). Per share that is R86.29; our models calculate a fair value of R71.05 per share.
What do the bullish and bearish scenarios say about SLM?
Our models span a range for Sanlam Ltd: cautious scenario R46.14, base R71.05, optimistic R96.04 per share (as of Nov 1, 2026, price R86.29). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SLM?
Sanlam Ltd trades at a price-to-earnings ratio of 9.7 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R71.05 is built from several models across several years. Other multiples: PEG 82.0, P/B 1.8, P/S 0.8, EV/EBITDA 1.4.
What is the PEG ratio of SLM?
The PEG ratio of Sanlam Ltd is 82.02 (P/E divided by earnings growth, as of Nov 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Sanlam Ltd (SLM)?
Balance-sheet figures for Sanlam Ltd (as of Nov 1, 2026): return on equity 19.9%, debt of 0.13 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is SLM from its 52-week high?
Sanlam Ltd trades at R86.29, about 15% below its 52-week high of R101.06 and 12% above the low of R77.00 (as of Nov 2, 2026). Distance from the high says nothing about value: that is what the fair value of R71.05 is for.
Which stocks are comparable to Sanlam Ltd?
From the same area (Financial Services) we also value Ping An Insurance (Group) Company, China Life Insurance Company, AIA Group, Manulife Financial Corporation, 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 Sanlam Ltd stock attractive at the current price?
The data as of Nov 1, 2026: price R86.29, calculated fair value R71.05 (−18%), Quality Score 49/100, from 6 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 SLM calculated?
We run Sanlam Ltd through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R71.05, 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 14.9 % above its aggregate fair value. Sanlam 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 Sanlam Ltd (SLM)?
The closing price on Nov 2, 2026 was R86.29. Our model-based fair value is R71.05, about 18% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sanlam Ltd right now?
Weak quality (49/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range (R46.14 to R96.04) leaves room in how you read the outcome. 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 Sanlam Ltd (SLM) come from?
Earnings per share at Sanlam Ltd grew +6.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +11.3 %, EBIT margin −4.1 %, tax rate −0.2 %, residual (interest, one-offs) +0.3 %. 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 Sanlam Ltd
How large is the market capitalisation of Sanlam Ltd (SLM)?
The market capitalisation of Sanlam Ltd is 183B ZAR. 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 Sanlam Ltd (SLM)?
The price-to-sales ratio of Sanlam Ltd is 0.79 (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 Sanlam Ltd (SLM)?
Earnings per share at Sanlam Ltd are R8.94 (price ÷ EPS = P/E 9.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Sanlam Ltd (SLM)?
The dividend yield of Sanlam Ltd is 5.6% (payout 54.3%). 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 Sanlam Ltd (SLM)?
The net margin of Sanlam Ltd is 8.2% (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 Sanlam Ltd (SLM)?
The return on equity (ROE) of Sanlam Ltd is 19.9% (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 Sanlam Ltd (SLM)?
On an EBIT basis the return on assets of Sanlam Ltd is 1.9% (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 Sanlam Ltd (SLM)?
The operating margin of Sanlam Ltd is 42.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sanlam Ltd (SLM)?
Revenue at Sanlam Ltd is growing −11.3% versus a year earlier (3y avg +38.0%). 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 Sanlam Ltd (SLM)?
Earnings per share at Sanlam Ltd are growing +29.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Sanlam Ltd (SLM) hold?
Sanlam Ltd holds more cash than debt, 16.1B ZAR net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 1, 2026