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L1 Long Short Fund Ltd (LSF) Fair Value & Analysis

Financial Services · AU · Market cap A$3.0B (≈ $2.2B) · ISIN AU0000002339

What is L1 Long Short Fund Ltd really worth?

LL L1 Long Short Fund Ltd LSF · AU
PriceA$4.90
Fair ValueA$2.51
Upside−48.8%
Quality71/100

A solid business, but trading 95% above our fair value of A$2.51.

As of Sep 2, 2026, the fair value of L1 Long Short Fund Ltd is A$2.51 per share against a price of A$4.90, so the fair value sits 49% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 52.1% net margin
generates free cash flow
Ranks above peers (6/9)
Wide moat 86/100

Risks

!Mixed Growth (revenue 5y +125.1 %/yr)
!Evidence only medium, so the estimate is less certain

For context

·2.78% dividend yield
Evidence: Medium Range A$2.44 – A$2.55

Fair value as of: Sep 2, 2026

From 12 valuation models · updated 4 days ago

Share price +5.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (A$2.55). The favourable scenario is already priced in.
  • The models converge in a tight band (A$2.44 to A$2.55), unusually little disagreement for a valuation.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

A$4.98 A$1.97 Fair Value A$2.51 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 2, 2026.

How to read this chart

60‑month range A$1.97 – A$4.98 · fair‑value band A$2.44 – A$2.55 · the A$4.90 price screens above the A$2.51 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 2, 2026.

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Analysis

L1 Long Short Fund Ltd (LSF) currently trades at A$4.90, while our model-based Fair Value estimate is A$2.51, implying the stock looks roughly 95.2% overvalued today. The Quality Score stands at 71/100 (solid quality), in the Financial Services sector. Bull case: the DCF Models group reads highest at a median of A$6.70 per share, and 6 of the 12 models we run sit above the A$4.90 price. Bear case: the Dividend Discount group reads lowest at A$1.38, and 6 of the 12 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, L1 Long Short Fund Ltd generated revenue of A$1.1B at a net margin of 52.1%. It earns a return on equity of 28.4%. The balance sheet holds a net cash position of A$1.4B. The stock trades on a trailing P/E of 30.6. Fundamentals as of Sep 2, 2026

Our scenario range runs from A$2.44 (bear case) to A$2.55 (bull case); at A$4.90, the current price sits above 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. The share trades near its 52-week high and 84% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −49%, LSF screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$0.0240 per share. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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 best evidence A$2.36 A$2.39 A$2.27 74
Growth DCF A$6.03 A$9.47 A$15.01 72
Rev-Margin DCF A$4.25 A$5.42 A$7.89 68
All 12 models by family
DCF Models
5Y P/E Exit A$4.51 A$6.70 A$9.59 66
10Y P/E Exit A$5.07 A$7.62 A$11.55 59
Earnings-Based
Graham-Dodd A$1.07 A$7.44 A$10.44 61
Lynch FV A$3.84 A$5.49 A$7.13 59
Dividend Discount
Gordon GGM A$0.8000 A$1.59 A$2.41 64
DDM Multi-Stage A$0.8000 A$1.38 A$1.68 65
Multiples
P/E Multiple A$1.53 A$2.04 A$2.55 63
P/B Multiple A$2.00 A$2.67 A$3.33 55
Asset-Based
NCAV (Graham) A$1.55 A$2.07 A$3.09 51
Growth DCF
Growth DCF A$6.03 A$9.47 A$15.01 72
Rev-Margin DCF A$4.25 A$5.42 A$7.89 68
Economic Profit
Residual Income best evidence A$2.36 A$2.39 A$2.27 74

Widest divergence: DCF Models (A$6.70) versus Dividend Discount (A$1.38). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 30.6
P/S ratio 7.55 P/E × margin
EPS (TTM) A$0.1600 price ÷ EPS = P/E 30.6
Dividend yield 2.8% payout 85.0%
Net margin 24.6% FY2025
Return on equity 28.4% TTM
More key figures
Profitability
Return on assets (EBIT) 8.4% avg 5y
Operating margin 78.5% TTM
Growth
Revenue (TTM) A$1.1B TTM
Revenue growth (YoY) +12.0% 3y avg +110%
EPS growth (YoY) +50.7%
Balance sheet & cash flow
Free cash flow A$162M FY2025
Net cash A$1.4B FY2025

Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 67 · Market factors (momentum, volatility) 83

Profitability 35
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 94
Earnings quality: real cash, not paper profit
Fin. Strength 69
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 73
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 72
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

L1 Long Short Fund Limited is a equity fund launched and managed by L1 Capital Pty Ltd. The fund investments predominantly in Australian and New Zealand securities. It employs long and short strategy to make its investments. The fund employs bottom up approach to make its investments. It is was formed in September 2014 and is domiciled in Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

L1 Long Short Fund Ltd reported revenue of A$404M in FY2025 versus A$77.4M in FY2021, a compound +51.1%/yr. Reported net income was A$99.5M in FY2025, compounding −33.7%/yr from FY2021.

Growth Quality 83/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$404M
Latest YoY
−6.5%
Avg. revenue 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.
+109.9%
Avg. revenue 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.
+125.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−25.3% · in AUD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−28.1%
Dividend yield2.8%
Worst earnings drop72% (2022) · in AUD
Revenue +51.1%/yr
FY21 A$77.4M
FY22 A$43.7M
FY23 A$67.0M
FY24 A$432M
FY25 A$404M
Net income −33.7%/yr
FY21 A$514M
FY22 A$141M
FY23 A$163M
FY24 A$170M
FY25 A$99.5M

LSF screens 95% overvalued. Compare with Blackstone Inc →

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Cite: Fair Value Calculator (2026). "L1 Long Short Fund Ltd Fair Value". https://www.fairvalue-calculator.com/stock/LSF.AU

Peer Group

Asset Management · 695 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 72 · Top 25%
Return on equity (TTM) 28% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 52% · Above median
Operating margin (TTM) 78% · Above median
Revenue growth 12% · Above median
Dividend yield (TTM) 2.8% · Below median

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 30.6× · Pricier than 75% of peers
P/FCF 13.5× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 40
FUTURE60 · sector 15
PAST100 · sector 24
HEALTH0 · sector 95
DIVIDEND56 · sector 81

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Asset Management stocks, each showing price versus our Fair Value estimate (as of Sep 2, 2026).

Stock Price Fair Value vs Fair Value
Blackstone Inc BX $142.39 $52.88 −63%
Investor AB INVEB kr 408.05 kr 827.56 +103%
Brookfield Corporation BN C$55.74 C$10.67 −81%
KKR & Co KKR $108.68 $19.97 −82%
Apollo Global Management, Inc APO $135.04 $101.04 −25%
State Street Corporation STT $193.33 $138.33 −28%
Ameriprise Financial, Inc AMP $559.32 $515.24 −8%
Ares Management Corporation ARES $143.10 $30.88 −78%
Northern Trust Corporation NTRS $186.79 $122.02 −35%
Raymond James Financial, Inc RJF $181.10 $142.42 −21%

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Frequently asked questions

Is L1 Long Short Fund Ltd (LSF) overvalued or undervalued?
As of Sep 2, 2026, our model estimates a fair value of A$2.51 versus a price of A$4.90, about −49% upside (overvalued).
What is the fair value of LSF?
Our model-based fair value for L1 Long Short Fund Ltd is A$2.51 (as of Sep 2, 2026), built from audited fundamentals. The current price: A$4.90.
What is the quality score of LSF?
L1 Long Short Fund Ltd has a Quality Score of 71/100. 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 L1 Long Short Fund Ltd (LSF)?
Our model-based price target is the fair value of A$2.51 (as of Sep 2, 2026) from 12 valuation models. Cautious scenario A$2.44, optimistic scenario A$2.55. It is a calculation from audited fundamentals, not an analyst target.
What is the L1 Long Short Fund Ltd stock forecast for 2026?
Our models put fair value at A$2.51, about −49% upside versus a price of A$4.90 (overvalued). Cautious scenario A$2.44, optimistic scenario A$2.55. The calculation is refreshed regularly with new filings.
What is the revenue of L1 Long Short Fund Ltd (LSF)?
L1 Long Short Fund Ltd reported trailing-twelve-month revenue of about A$1.1B (latest available figure, as of Sep 2, 2026).
What is the net profit margin of LSF?
The net profit margin of L1 Long Short Fund Ltd is about 52.1%, meaning it keeps roughly 52.1% of revenue as net income. Based on the latest reported figures.
Does L1 Long Short Fund Ltd pay a dividend?
L1 Long Short Fund Ltd currently shows a dividend yield of about 2.78% relative to its recent price (as of Sep 2, 2026).
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