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Challenger Limited (CGF) Fair Value & Analysis

Financial Services · AU · Market cap A$6.3B

CL Challenger Limited CGF · AU
PriceA$9.82
Fair ValueA$3.63
Upside-63.0%
Quality95/100
Evidence: High Range A$2.72 – A$4.53

Fair value as of: Jun 26, 2026

From 26 valuation models · updated 4 days ago

Fair value updated Jun 26, 2026 — revised from A$4.52 to A$3.63 (−19.7%) since Jun 24, 2026. Share price +12.9% over the past month.

Price vs Fair Value (12 months)

A$9.82 A$7.25 Fair Value A$3.63 Jun 2025 Jun 2026

12‑month range A$7.25 – A$9.82 · fair‑value band A$2.72 – A$4.53 · the A$9.82 price screens above the A$3.63 fair value. As of Jun 26, 2026.

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Analysis

Challenger Limited (CGF) currently trades at A$9.82, while our model-based Fair Value estimate is A$3.63 — implying the stock looks roughly 63.0% overvalued today. We read business quality at 95/100 (high quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Challenger Limited generated revenue of A$2.8B at a net margin of 16.4%. Revenue declined 16.9% year over year. It earns a return on equity of 11.6%. Net debt stands at A$7.6B. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) A$2.8B
Revenue growth (YoY) -16.9%
Net margin 16.4%
Return on equity 11.6%
Free cash flow A$399M FY2025
P/E ratio 14.7
More key figures
Operating margin 55.6%
EPS (TTM) A$0.6200
Dividend yield 3.3%
EPS growth (YoY) +333%
Net debt A$7.6B FY2025

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

About the company

Challenger Limited is a publicly owned investment manager. The company also provides retirement services to its clients. It manages equity mutual funds. The firm invests into the public equity markets across the world. Challenger Limited was founded in 1985 and is based in Australia, Asia and United Kingdom.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Challenger Limited reported revenue of A$3.1B in FY2025 versus A$3.0B in FY2021, a compound +0.8%/yr. Reported net income was A$192M in FY2025, compounding −24.5%/yr from FY2021.

Revenue +0.8%/yr
FY21 A$3.0B
FY22 −A$414M
FY23 A$2.2B
FY24 A$3.0B
FY25 A$3.1B
Net income −24.5%/yr
FY21 A$592M
FY22 A$254M
FY23 A$288M
FY24 A$130M
FY25 A$192M

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Similar stocks

6 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Jun 26, 2026).

Stock Price Fair Value vs Fair Value
Ping An Insurance (Group) Company 601318 ¥51.98 ¥103.96 +100%
China Life Insurance Company 601628 ¥32.82 ¥65.64 +100%
AIA Group AAGIY $37.91 $30.44 -20%
Manulife Financial Corporation MFC $40.34 $76.10 +89%
China Pacific Insurance (Group) Co CHPXF $3.65 $5.82 +59%
Aflac Incorporated AFL $117.11 $71.78 -39%

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Frequently asked questions

Is Challenger Limited (CGF) undervalued?
As of Jun 26, 2026, our model estimates a fair value of A$3.63 versus a price of A$9.82 — about −63% (overvalued). Model-based estimate, not financial advice.
What is the fair value of CGF?
Our 21-model fair value for Challenger Limited is A$3.63 (as of Jun 26, 2026), built from audited fundamentals. The current price is A$9.82.
What is the quality score of CGF?
Challenger Limited has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Challenger Limited (CGF)?
Challenger Limited reported trailing-twelve-month revenue of about A$2.8B (latest available figure, as of Jun 26, 2026).
What is the net profit margin of CGF?
The net profit margin of Challenger Limited is about 16.4%, meaning it keeps roughly 16.4% of revenue as net income. Based on the latest reported figures.
Does Challenger Limited pay a dividend?
Challenger Limited currently shows a dividend yield of about 3.33% 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.