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Discovery Limited (DSBP) Fair Value & Analysis

Financial Services · ZA · Market cap 1.3B ZAC

DL Discovery Limited DSBP · JSE
PriceR131.95
Fair ValueR153.60
Upside+16.4%
Quality52/100
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Mixed Growth
Solidly profitable · 11.9% net margin
Low debt · generates free cash flow
Ranks above peers (8/11)
Moderate moat 61/100
Evidence: High Range R115.20 – R192.00 Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from R192.75 to R153.60 (−20.3%) since Jul 17, 2026. Share price +1.6% over the past month.

A solid business, screening 16% undervalued on our models.

What matters now

  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
  • Our model range runs from R115.20 (bear) to R192.00 (bull), base R153.60. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 52/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

R141.05 R66.66 Fair Value R153.60 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R66.66 – R141.05 · fair‑value band R115.20 – R192.00 · the R131.95 price screens below the R153.60 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Discovery Limited (DSBP) currently trades at R131.95, while our model-based Fair Value estimate is R153.60, implying the stock looks roughly 16.4% undervalued today. The Quality Score stands at 52/100 (solid 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, Discovery Limited generated revenue of 91.1B ZAR at a net margin of 11.9%. Revenue grew 8.8% year over year. It earns a return on equity of 15.7%. Net debt stands at 1.6B ZAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from R115.20 (bear case) to R192.00 (bull case); at R131.95, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at 34% fair-value upside, at 16%, DSBP screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Residual Income R94.52 R115.21 R250.01 76
Gordon GGM R20.56 R37.05 R51.00 70
P/E Multiple R144.56 R192.75 R240.93 63
All 6 models by family
Dividend Discount
Gordon GGM R20.56 R37.05 R51.00 70
DDM Multi-Stage R20.56 R32.02 R39.58 61
Multiples
P/E Multiple R144.56 R192.75 R240.93 63
P/B Multiple R106.95 R142.60 R178.25 55
Asset-Based
NCAV (Graham) R50.93 R68.24 R101.86 50
Economic Profit
Residual Income R94.52 R115.21 R250.01 76

Widest divergence: Multiples (R142.60) versus Dividend Discount (R32.02). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 91.1B ZAC
Revenue growth (YoY) +8.8%
Net margin 11.9%
Return on equity 15.7%
Free cash flow 6.7B ZAC FY2025
P/E ratio 18.2 as of Jun 10, 2026
More key figures
Operating margin 22.9%
EPS (TTM) R6.90
Dividend yield 0.0%
EPS growth (YoY) +28.1%
Net debt 1.6B ZAC FY2019

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 49 · Market factors (momentum, volatility) 56

Profitability 33
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 53
Distance to the 52-week high (market factor)
Net Issuance 76
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Discovery Limited provides various insurance products and services primarily in South Africa and the United Kingdom. It operates through SA Health, SA Life, SA Invest, SA Insure, SA Bank, UK Health, UK Life, and All Other segments.

Full company description

Discovery Limited provides various insurance products and services primarily in South Africa and the United Kingdom. It operates through SA Health, SA Life, SA Invest, SA Insure, SA Bank, UK Health, UK Life, and All Other segments. The company offers health, life, car, travel, business, and home insurance products; motor, building, household content, and portable possessions insurance products; private medical insurance products; and commercial short-term risk insurance products. It also provides pension and provident fund solutions; managed care services; financial solutions; investment products; retail banking solutions, including deposits and loans and advances; and Vitality, which offers health and lifestyle benefits. The company was formerly known as Discovery Holdings Limited and changed its name to Discovery Limited in December 2012. The company was founded in 1992 and is based in Sandton, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Discovery Limited reported revenue of R81.9B in FY2025 versus R75.2B in FY2021, a compound +2.2%/yr. Reported net income was R9.6B in FY2025, compounding +31.3%/yr from FY2021.

Growth Quality 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
81.9B ZAR
Latest YoY
−7.3%
Avg. growth/yr (3Y) 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.
+7.3%
Avg. growth/yr (5Y) 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.
+5.2%
Avg. growth/yr (11Y) 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.
+8.3%
Revenue +2.2%/yr
FY21 R75.2B
FY22 R66.4B
FY23 R84.8B
FY24 R88.4B
FY25 R81.9B
Net income +31.3%/yr
FY21 R3.2B
FY22 R5.5B
FY23 R5.3B
FY24 R7.6B
FY25 R9.6B

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Cite: Fair Value Calculator (2026). "Discovery Limited Fair Value". https://www.fairvalue-calculator.com/stock/DSBP

Peer Group

Insurance - Life · 96 stocks

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.

Quality Score 53 · Below median
Fair Value upside +15% · Above median
Return on equity (TTM) 16% · Above median
Return on assets 3% · Top 25%
Net margin (TTM) 12% · Above median
Operating margin (TTM) 23% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.25× · Lower than median

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 18.2× · Pricier than median
P/FCF 0.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 53 · sector 26
FUTURE 44 · sector 44
PAST 63 · sector 43
HEALTH 88 · sector 85
DIVIDEND 0 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥37.33 ¥49.98 +34%
Ping An Insurance (Group) Company 601318 ¥52.60 ¥84.72 +61%
Manulife Financial Corporation 0945 HK$343.40 HK$143.17 -58%
Life Insurance Corporation LICI ₹412.15 ₹392.93 -5%
Samsung Life Insurance Co 032830 302,500 KRW 191,293 KRW -37%
China Pacific Insurance (Group) Co 601601 ¥30.48 ¥57.51 +89%
Prudential plc PUKN 545.00 MXN 499.36 MXN -8%
New China Life Insurance Company 601336 ¥58.83 ¥99.92 +70%
SBI Life Insurance Company SBILIFE ₹1,830 ₹293.11 -84%
Cathay Financial Holding 2882B 59.00 TWD 107.71 TWD +83%

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Frequently asked questions

Is Discovery Limited (DSBP) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R153.60 versus a price of R131.95, about +16% (undervalued).
What is the fair value of DSBP?
Our model-based fair value for Discovery Limited is R153.60 (as of Aug 13, 2026), built from audited fundamentals. The current price is R131.95.
What is the quality score of DSBP?
Discovery Limited has a Quality Score of 52/100. 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 revenue of Discovery Limited (DSBP)?
Discovery Limited reported trailing-twelve-month revenue of about 91.1B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of DSBP?
The net profit margin of Discovery Limited is about 11.9%, meaning it keeps roughly 11.9% of revenue as net income. Based on the latest reported figures.
Does Discovery Limited pay a dividend?
Discovery Limited currently shows a dividend yield of about 0.02% relative to its recent price (as of Aug 13, 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.

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