Tower Ltd (TWR) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Tower Ltd stock A$1.58, price A$1.69, that is 6.2% below the price, quality 82 out of 100. Rating: fairly valued. Calculated from audited financials with 6 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 8, 2026.
How to read this chart
60‑month range A$0.4155 – A$1.76 · fair‑value band A$1.11 – A$2.10 · the A$1.69 price screens above the A$1.58 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Tower Limited provides general insurance products in New Zealand and the Pacific Islands.
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Its insurance products include car, house, contents, contract works and renovation cover, landlord, boat, business, travel, pet, renters, house and contents bundle, electric vehicle, motorbike and motorcycle, lifestyle block, caravan or trailer, as well as motorhome, campervan and RV insurance.
It also offers multi-policy discount insurance. Tower Limited was founded in 1869 and is headquartered in Auckland, New Zealand.
Stock analysis
Tower Ltd (TWR) currently trades at A$1.69, while our model-based Fair Value estimate is A$1.58, so the stock looks roughly fairly valued today (gap 6.6%).
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Valuation
Bull case: the Multiples group reads highest at a median of A$1.71 per share, and 1 of the 6 models we run sit above the A$1.69 price.
Bear case: the Asset-Based group reads lowest at A$0.4100, and 5 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: A$1.11 (bear) to A$2.10 (bull), the price of A$1.69 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 82/100 (high quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Tower Ltd reported revenue of 542M NZD in FY2025 versus 335M NZD in FY2021, a compound +12.7%/yr. Reported net income was 83.7M NZD in FY2025, compounding +45.5%/yr from FY2021.
Key figures
Market cap A$579M (≈ $399M) Small · P/E ratio 11.2 · P/S ratio 1.18 · EPS (TTM) A$0.1500 · Dividend yield 12.8% · Net margin 9.4% · Return on equity 17.2% · Return on assets (EBIT) 23.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 59 out of 100 (low confidence).
What moves the price
The share trades about 4% below its 52-week high and 16% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −22% fair-value upside, at −6%, TWR screens cheaper than that median.
Fair Value models
BearA$1.11Fair Value A$1.58BullA$2.10
Price A$1.69 · Downside -6.2%
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.87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+9.8%
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.
+14.6%
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.
+10.6%
Start year 2020 (pandemic). Over 10 years: +7.4% a year
Revenue growth 27 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.
−2.9%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+72.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+59.4%
Dividend (yield on the price)12.8%
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.39.0% vs 11.8%, picking up
Profit margin 2020 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.10% → 22%
2025 sits 89% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
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).
−16.7%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (figures in NZD, New Zealand: IMF forecast 2.3% a year to 2030, 3.0% from 2016 to 2025) that is about −18.6% a year for the price.
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 - Property & Casualty · 100 stocks
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). "Tower Ltd Fair Value". https://www.fairvalue-calculator.com/stock/TWR
Frequently asked questions
Is Tower Ltd (TWR) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of A$1.58 versus a price of A$1.69, about 6% lower (fairly valued).
What is the fair value of TWR?
Our model-based fair value for Tower Ltd is A$1.58 (as of Nov 8, 2026), built from audited fundamentals. The current price: A$1.69.
What is the quality score of TWR?
Tower Ltd has a Quality Score of 82/100. 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 Tower Ltd (TWR)?
Our model-based price target is the fair value of A$1.58 (as of Nov 8, 2026) from 6 valuation models. Cautious scenario A$1.11, optimistic scenario A$2.10. It is a calculation from audited fundamentals, not an analyst target.
What is the Tower Ltd stock forecast for 2026?
Our models put fair value at A$1.58, about 6% lower versus a price of A$1.69 (fairly valued). Cautious scenario A$1.11, optimistic scenario A$2.10. The calculation is refreshed regularly with new filings.
What is the revenue of Tower Ltd (TWR)?
Tower Ltd reported trailing-twelve-month revenue of about 606M NZD (latest available figure, as of Nov 8, 2026).
Does Tower Ltd pay a dividend?
Tower Ltd currently shows a dividend yield of 12.76% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Tower Ltd (TWR) and when is the ex-dividend date?
Tower Ltd pays a dividend of A$0.215 per share a year, a dividend yield of 12.8%. The last ex-dividend date was Jun 10, 2026. A dividend has been paid every year since 2021. The payout ratio is 62.3% of earnings. Free cash flow covers the dividend 2.33 times. Our assessment: Sustainable. Payout and cash coverage both look sustainable.
What growth is priced into Tower Ltd (TWR)?
For today's price to be fair in a discounted-cash-flow model, Tower Ltd would have to grow free cash flow by -16.7 % per year for five years (discount rate 9.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.6 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of TWR use?
Our models discount Tower Ltd at 9.6 %: a base by market capitalisation (small), damped by beta 0.06, 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 Tower Ltd that is -16.7 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.6 %) and the same formula as our fair value.
How much growth has Tower Ltd (TWR) delivered so far?
Over the past 5 years revenue at Tower Ltd grew +10.6 % a year. The price currently implies free-cash-flow growth of -16.7 % 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 Tower Ltd (TWR) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Tower Ltd (-16.7 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Tower Ltd (TWR)?
The free-cash-flow yield on the price is 20.23 %: that much free cash flow Tower Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Tower Ltd (TWR)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tower Ltd it is A$1.58 per share (as of Nov 8, 2026), against a price of A$1.69. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is Tower Ltd stock overvalued or undervalued in 2026?
As of Nov 8, 2026, TWR trades above its calculated fair value: price A$1.69, fair value A$1.58, a gap of about −6% (fairly valued). 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 TWR?
No. The price is what the market pays today (A$1.69); the fair value is what the company's own numbers justify (A$1.58). For Tower Ltd the two are A$0.1050 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tower Ltd worth?
The market values Tower Ltd at about A$579M (market capitalisation, as of Nov 8, 2026). Per share that is A$1.69; our models calculate a fair value of A$1.58 per share.
What do the bullish and bearish scenarios say about TWR?
Our models span a range for Tower Ltd: cautious scenario A$1.11, base A$1.58, optimistic A$2.10 per share (as of Nov 8, 2026, price A$1.69). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TWR?
Tower Ltd trades at a price-to-earnings ratio of 11.2 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$1.58 is built from several models across several years. Other multiples: PEG 2.9, P/B 2.0, P/S 1.2, EV/EBITDA 7.8.
What is the PEG ratio of TWR?
The PEG ratio of Tower Ltd is 2.88 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Tower Ltd (TWR)?
Balance-sheet figures for Tower Ltd (as of Nov 8, 2026): return on equity 17.2%, debt of 0.09 per unit of equity. They feed the Quality Score of 82/100, which measures business quality independently of the share price.
How far is TWR from its 52-week high?
Tower Ltd trades at A$1.69, about 4% below its 52-week high of A$1.76 and 16% above the low of A$1.46 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of A$1.58 is for.
Which stocks are comparable to Tower Ltd?
From the same area (Financial Services) we also value Chubb Limited, The Progressive Corporation, The Travelers Companies, Inc, The Allstate 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 Tower Ltd stock attractive at the current price?
The data as of Nov 8, 2026: price A$1.69, calculated fair value A$1.58 (−6%), Quality Score 82/100, 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 TWR calculated?
We run Tower Ltd through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of A$1.58 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 13.3% above its aggregate fair value. Tower 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 Tower Ltd (TWR)?
The closing price on Nov 9, 2026 was A$1.69. Our model-based fair value is A$1.58, about 6% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tower Ltd right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (A$1.11 to A$2.10) 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.
Key figures of Tower Ltd
How large is the market capitalisation of Tower Ltd (TWR)?
The market capitalisation of Tower Ltd is A$579M (≈ $399M). 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 Tower Ltd (TWR)?
The price-to-sales ratio of Tower Ltd is 1.18 (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 Tower Ltd (TWR)?
Earnings per share at Tower Ltd are A$0.1500 (price ÷ EPS = P/E 11.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tower Ltd (TWR)?
The dividend yield of Tower Ltd is 12.8% (payout 143%). 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 Tower Ltd (TWR)?
The net margin of Tower Ltd is 9.4% (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 Tower Ltd (TWR)?
The return on equity (ROE) of Tower Ltd is 17.2% (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 Tower Ltd (TWR)?
On an EBIT basis the return on assets of Tower Ltd is 23.6% (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 Tower Ltd (TWR)?
The operating margin of Tower Ltd is 11.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tower Ltd (TWR)?
Revenue at Tower Ltd is growing −3.4% versus a year earlier (3y avg +14.6%). 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 Tower Ltd (TWR)?
Earnings per share at Tower Ltd are growing −49.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Tower Ltd (TWR) hold?
Tower Ltd holds more cash than debt, 45.5M NZD net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 8, 2026