Lewis Group Limited (LEW) fair value: what the stock is really worth
As of Oct 9, 2026: fair value of Lewis Group Limited ZAR 181, price ZAR 83.41, upside +116.4%, quality 68 out of 100. Calculated from audited financials with 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, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
60‑month range R24.95 – R99.62 · fair‑value band R102.23 – R283.35 · the R83.41 price screens below the R180.53 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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Lewis Group Limited, together with its subsidiaries, engages in the retail of household furniture, home appliances, electronic goods, and homewares in South Africa, Botswana, Lesotho, Eswatini, and Namibia. It operates through Traditional, and Speciality segments.
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Lewis Group Limited, together with its subsidiaries, engages in the retail of household furniture, home appliances, electronic goods, and homewares in South Africa, Botswana, Lesotho, Eswatini, and Namibia. It operates through Traditional, and Speciality segments. The company retails electrical appliances; sound and vision equipment; beds and mattresses; and various furniture products through its stores under the Lewis, Best Home and Electric, Bedzone, United Furniture Outlets, and Beares brand names. It also provides microinsurance to customers purchasing merchandise on credit under the Monarch Insurance brand. Lewis Group Limited was founded in 1934 and is based in Cape Town, South Africa.
Stock analysis
Lewis Group Limited (LEW) currently trades at R83.41, while our model-based Fair Value estimate is R180.53, implying the stock looks roughly 53.8% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R332.58 per share, and 25 of the 26 models we run sit above the R83.41 price.
Bear case: the Asset-Based group reads lowest at R71.16, and 1 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: R102.23 (bear) to R283.35 (bull), the price of R83.41 sits below 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 68/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Lewis Group Limited reported revenue of 10.3B ZAR in FY2026 versus 6.0B ZAR in FY2022, a compound +14.6%/yr. Reported net income was 854M ZAR in FY2026, compounding +15.3%/yr from FY2022.
Key figures
Market cap 4.5B ZAC · P/E ratio 5.3 · P/S ratio 0.43 · EPS (TTM) R15.87 · Dividend yield 10.8% · Net margin 8.3% · Return on equity 16.2% · Return on assets (EBIT) 11.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 12% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 8% fair-value upside, at 116%, LEW screens cheaper than that median.
Fair Value models
Bear R102.23Fair Value R180.53Bull R283.35
Price R83.41 · Upside +116.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (3.65 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.Evidence ⓘEvidence = 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.80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+11.1%
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.
+18.8%
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.
+13.6%
Start year 2021 (pandemic). Over 10 years: +9.0% a year
Revenue growth 22 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.
+7.1%
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What shareholders gained per year (last 5 years), in ZAR (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. 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.
+33.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+22.9%
Dividend (yield on the price)10.8%
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.22.9% vs 5.4%, picking up
Profit margin 2021 to 2026 ⓘ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.14% → 13%
2026 sits 103% 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 2021 (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).
+10.5%
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 +7.0% 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.Specialty Retail · 203 stocks
Beats the industry median on 12/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+116.4% · Top 25%
Profitability
Return on equity (TTM)16.2% · Above median
Return on assets9.8% · Top 25%
Net margin (TTM)8.3% · Top 25%
Operating margin (TTM)15.2% · Top 25%
Growth and dividend
Revenue growth11.0% · Above median
Dividend yield (TTM)10.8% · Top 25%
Balance sheet
Debt / equity0.25× · Above median
Valuation Multiplesvs Specialty Retail 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). "Lewis Group Limited Fair Value". https://www.fairvalue-calculator.com/stock/LEW
Frequently asked questions
Is Lewis Group Limited (LEW) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of R180.53 versus a price of R83.41, about +116% upside (undervalued).
What is the fair value of LEW?
Our model-based fair value for Lewis Group Limited is R180.53 (as of Oct 1, 2026), built from audited fundamentals. The current price: R83.41.
What is the quality score of LEW?
Lewis Group Limited has a Quality Score of 68/100. 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 Lewis Group Limited (LEW)?
Our model-based price target is the fair value of R180.53 (as of Oct 1, 2026) from 26 valuation models. Cautious scenario R102.23, optimistic scenario R283.35. It is a calculation from audited fundamentals, not an analyst target.
What is the Lewis Group Limited stock forecast for 2026?
Our models put fair value at R180.53, about +116% upside versus a price of R83.41 (undervalued). Cautious scenario R102.23, optimistic scenario R283.35. The calculation is refreshed regularly with new filings.
What is the revenue of Lewis Group Limited (LEW)?
Lewis Group Limited reported trailing-twelve-month revenue of about 10.3B ZAR (latest available figure, as of Oct 1, 2026).
Does Lewis Group Limited pay a dividend?
Lewis Group Limited currently shows a dividend yield of about 10.75% relative to its recent price (as of Oct 1, 2026).
What growth is priced into Lewis Group Limited (LEW)?
For today's price to be fair in a discounted-cash-flow model, Lewis Group Limited would have to grow free cash flow by +10.5 % per year for five years (discount rate 14.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.6 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of LEW use?
Our models discount Lewis Group Limited at 14.9 %: a base by market capitalisation (micro), damped by beta 0.46, 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 Lewis Group Limited that is +10.5 % per year a year over ten years, using the same discount rate (14.9 %) and the same formula as our fair value.
How much growth has Lewis Group Limited (LEW) delivered so far?
Over the past 5 years revenue at Lewis Group Limited grew +13.6 % a year. The price currently implies +10.5 % 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 Lewis Group Limited (LEW) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into Lewis Group Limited (+10.5 % 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 Lewis Group Limited (LEW)?
The free-cash-flow yield on the price is 10.08 %: that much free cash flow Lewis Group Limited produces per unit of market value. When it exceeds the discount rate of our models (14.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lewis Group Limited (LEW)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lewis Group Limited it is R180.53 per share (as of Oct 1, 2026), against a price of R83.41. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Lewis Group Limited stock overvalued or undervalued in 2026?
As of Oct 1, 2026, LEW trades below its calculated fair value: price R83.41, fair value R180.53, a gap of about +116% (undervalued). 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 LEW?
No. The price is what the market pays today (R83.41); the fair value is what the company's own numbers justify (R180.53). For Lewis Group Limited the two are R97.12 per share apart. That gap is exactly why we show both numbers side by side.
How much is Lewis Group Limited worth?
The market values Lewis Group Limited at about 4.5B ZAC (market capitalisation, as of Oct 1, 2026). Per share that is R83.41; our models calculate a fair value of R180.53 per share.
What do the bullish and bearish scenarios say about LEW?
Our models span a range for Lewis Group Limited: cautious scenario R102.23, base R180.53, optimistic R283.35 per share (as of Oct 1, 2026, price R83.41). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LEW?
Lewis Group Limited trades at a price-to-earnings ratio of 5.3 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R180.53 is built from several models across several years. Other multiples: PEG 39.3, P/B 0.8, P/S 0.4, EV/EBITDA 3.8.
What is the PEG ratio of LEW?
The PEG ratio of Lewis Group Limited is 39.33 (P/E divided by earnings growth, as of Oct 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Lewis Group Limited (LEW)?
Balance-sheet figures for Lewis Group Limited (as of Oct 1, 2026): return on equity 16.2%, debt of 0.25 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is LEW from its 52-week high?
Lewis Group Limited trades at R83.41, about 16% below its 52-week high of R99.62 and 12% above the low of R74.22 (as of Oct 9, 2026). Distance from the high says nothing about value: that is what the fair value of R180.53 is for.
Which stocks are comparable to Lewis Group Limited?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, Casey's General Stores, Inc, 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 Lewis Group Limited stock attractive at the current price?
The data as of Oct 1, 2026: price R83.41, calculated fair value R180.53 (+116%), Quality Score 68/100, from 26 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 LEW calculated?
We run Lewis Group Limited through 26 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 R180.53, 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 14.6 % above its aggregate fair value. Lewis Group Limited currently trades 54 % below its own fair value, and the market average says nothing about that. 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 Lewis Group Limited (LEW)?
The closing price on Oct 9, 2026 was R83.41. Our model-based fair value is R180.53, about +116% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lewis Group Limited right now?
The price is below even our cautious bear case (R102.23). The market is more pessimistic than our downside scenario. The model range is unusually wide (R102.23 to R283.35). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Lewis Group Limited (LEW) come from?
Earnings per share at Lewis Group Limited grew +5.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +15.1 %, EBIT margin −5.4 %, tax rate +0.4 %, residual (interest, one-offs) −3.9 %. 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 Lewis Group Limited
How large is the market capitalisation of Lewis Group Limited (LEW)?
The market capitalisation of Lewis Group Limited is 4.5B ZAC. 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 Lewis Group Limited (LEW)?
The price-to-sales ratio of Lewis Group Limited is 0.43 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Lewis Group Limited (LEW)?
Earnings per share at Lewis Group Limited are R15.87 (price ÷ EPS = P/E 5.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Lewis Group Limited (LEW)?
The dividend yield of Lewis Group Limited is 10.8% (payout 56.5%). 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 Lewis Group Limited (LEW)?
The net margin of Lewis Group Limited is 8.3% (fiscal year 2026). 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 Lewis Group Limited (LEW)?
The return on equity (ROE) of Lewis Group Limited is 16.2% (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 Lewis Group Limited (LEW)?
On an EBIT basis the return on assets of Lewis Group Limited is 11.4% (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 Lewis Group Limited (LEW)?
The operating margin of Lewis Group Limited is 15.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lewis Group Limited (LEW)?
Revenue at Lewis Group Limited is growing +11.0% versus a year earlier (3y avg +18.8%). 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 Lewis Group Limited (LEW)?
Earnings per share at Lewis Group Limited are growing +12.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Lewis Group Limited (LEW) carry?
The net debt of Lewis Group Limited is 2.2B ZAC (fiscal year 2026, ≈ 4.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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