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Absa Group (ABG) Fair Value & Analysis

Financial Services · ZA · Market cap 196B ZAC

AG Absa Group ABG · JSE
PriceR245.82
Fair ValueR364.93
Upside+48.5%
Quality95/100
Evidence: High Range R273.70 – R456.16

Fair value as of: Jun 26, 2026

From 26 valuation models · updated 3 days ago

Fair value updated Jun 26, 2026 — revised from R291.24 to R364.93 (+25.3%) since Jun 24, 2026. Share price +2.9% over the past month.

Price vs Fair Value (12 months)

R264.57 R159.18 Fair Value R364.93 Jun 2025 Jun 2026

12‑month range R159.18 – R264.57 · fair‑value band R273.70 – R456.16 · the R245.82 price screens below the R364.93 fair value. As of Jun 26, 2026.

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Analysis

Absa Group (ABG) currently trades at R245.82, while our model-based Fair Value estimate is R364.93 — implying the stock looks roughly 48.5% undervalued today. We read business quality at 95/100 (high quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Absa Group generated revenue of 102B ZAR at a net margin of 21.7%. Revenue grew 5.5% year over year. It earns a return on equity of 13.7%. Net debt stands at 300B ZAR. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 102B ZAC
Revenue growth (YoY) +5.5%
Net margin 21.7%
Return on equity 13.7%
Free cash flow 64.7B ZAC FY2025
P/E ratio 8.8
More key figures
Operating margin 36.7%
EPS (TTM) R26.73
Dividend yield 0.1%
EPS growth (YoY) -7.2%
Net debt 300B ZAC FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

Absa Group Limited, together with its subsidiaries, provides retail, business, corporate, investment banking, insurance, financial, and wealth management products and services in South Africa and internationally. The company offers life and non-life insurance products; residential property-related finance solutions; mortgages; vehicle and asset finance products and services; cash, debit, credit and prepaid cards; personal loans; corporate, relationship, and transactional banking services; mobile payments; and savings and investment products and services. It also provides insurance and financial advisory, stockbroking and portfolio management, and trust administrative services. In addition, the company offers trade and working capital, cash management, payment, and liquidity products and solutions; and investment banking, private equity and infrastructure investment, and commercial property financing services. Further, it provides broker-dealer trading in debt and equity securities; …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Absa Group reported revenue of R211B in FY2025 versus R77.3B in FY2021, a compound +28.5%/yr. Reported net income was R23.3B in FY2025, compounding +6.1%/yr from FY2021.

Revenue +28.5%/yr
FY21 R77.3B
FY22 R83.0B
FY23 R89.1B
FY24 R111B
FY25 R211B
Net income +6.1%/yr
FY21 R18.3B
FY22 R20.9B
FY23 R19.9B
FY24 R22.6B
FY25 R23.3B

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Frequently asked questions

Is Absa Group (ABG) undervalued?
As of Jun 26, 2026, our model estimates a fair value of R364.93 versus a price of R245.82 — about +48% (undervalued). Model-based estimate, not financial advice.
What is the fair value of ABG?
Our 21-model fair value for Absa Group is R364.93 (as of Jun 26, 2026), built from audited fundamentals. The current price is R245.82.
What is the quality score of ABG?
Absa Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Absa Group (ABG)?
Absa Group reported trailing-twelve-month revenue of about 102B ZAR (latest available figure, as of Jun 26, 2026).
What is the net profit margin of ABG?
The net profit margin of Absa Group is about 21.7%, meaning it keeps roughly 21.7% of revenue as net income. Based on the latest reported figures.
Does Absa Group pay a dividend?
Absa Group currently shows a dividend yield of about 0.07% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.