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Old Mutual Ltd (OMU) fair value: what the stock is really worth

As of Oct 2, 2026: fair value of Old Mutual Ltd £1.18, price £0.59, upside +101.4%, quality 52 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? Yes
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Financial Services · GB · Home South Africa · ISIN ZAE000255360

OM Thin data Oct 2, 2026

Old Mutual Ltd

OMU · LSE

Clearly undervaluedStrong Fair Value upside, but quality is only moderate.

✓Fair value £1.18 · Strongly undervalued (+101.4%)
!Quality 52/100
!Expensive Growth (revenue YoY +161.4 %/yr)
!Thin margins · 7.1% net margin (TTM)
!Low debt · negative free cash flow
!7.4% dividend yield · Watch coverage
✓Ranks above peers (6/10)
!Moderate moat 50/100
!Evidence only low, so the estimate is less certain

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

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

Price vs Fair Value

£0.7486 £0.0952 Fair Value £1.18 Jul 2021 Oct 2026

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

How to read this chart

60‑month range £0.0952 – £0.7486 · fair‑value band £0.8850 – £1.47 · the £0.5860 price screens below the £1.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.

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Company profile

Old Mutual Limited, together with its subsidiaries, provides financial solutions to retail and corporate customers in South Africa and rest of Africa. It operates through Old Mutual Life and Savings, Old Mutual Investments, Old Mutual Banking, Old Mutual Insure, Old Mutual Africa Regions, and Other Group Activities segments.

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Old Mutual Limited, together with its subsidiaries, provides financial solutions to retail and corporate customers in South Africa and rest of Africa. It operates through Old Mutual Life and Savings, Old Mutual Investments, Old Mutual Banking, Old Mutual Insure, Old Mutual Africa Regions, and Other Group Activities segments. The company offers risk, savings, investment, lending, and income products; simple financial solutions for low- to lower-middle income customers; financial advice and tailored investment for middle-income and high-net-worth individuals; and employee benefits and business solutions for SMEs. It is also involved in listed asset management, Old Mutual alternative investment, and specialized finance businesses; and provision of banking and lending services, including micro lending. In addition, the company provides banking services to customers in the low-income and lower-middle income markets; non-life insurance products through multiple channels; and life and savings, as well as property and casualty, including health insurance products. Further, it offers personal loans and debt consolidation loans; and Money Account, a low-cost transactional account and unit trust savings account. Old Mutual Limited was founded in 1845 and is based in Cape Town, South Africa.

Stock analysis

Old Mutual Ltd (OMU) currently trades at £0.5860, while our model-based Fair Value estimate is £1.18, implying the stock looks roughly 50.3% undervalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of £3.91 per share, and 8 of the 9 models we run sit above the £0.5860 price.

Bear case: the Asset-Based group reads lowest at £0.4500, and 1 of the 9 models stay below the price. Evidence for this calculation is low.

Scenario range: £0.8850 (bear) to £1.47 (bull), the price of £0.5860 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 52/100 (solid quality), in the Financial Services sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Old Mutual Ltd reported revenue of 274B ZAR in FY2025 versus 244B ZAR in FY2021, a compound +2.9%/yr. Reported net income was 8.4B ZAR in FY2025, compounding +5.8%/yr from FY2021.

Key figures

Market cap 2.4B GBX · P/E ratio 6.5 · P/S ratio 0.20 · EPS (TTM) £0.0900 · Dividend yield 7.4% · Net margin 3.1% · Return on equity 14.8% · Return on assets (EBIT) 7.6%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).

What moves the price

The share trades about 22% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −22% fair-value upside, at 101%, OMU screens cheaper than that median.

Fair Value models

Bear £0.8850 Fair Value £1.18 Bull £1.47
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 2025 figures (about 9 months old). Earnings retained since then (£0.0352 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.
Highest evidence
Residual Income £0.6500 £0.8000 £1.14 75
Owner Earnings £1.88 £3.91 £8.00 71
Gordon GGM £0.3800 £0.7500 £1.14 67
All 9 models by family
DCF Models
Owner Earnings £1.88 £3.91 £8.00 71
Earnings-Based
Graham-Dodd £0.6500 £4.50 £6.32 63
Lynch FV £1.43 £2.05 £2.66 61
Dividend Discount
Gordon GGM £0.3800 £0.7500 £1.14 67
DDM Multi-Stage £0.3800 £0.6500 £0.7900 67
Multiples
P/E Multiple £0.9300 £1.23 £1.54 63
P/B Multiple £0.7100 £0.9500 £1.19 55
Asset-Based
NCAV (Graham) £0.3400 £0.4500 £0.6800 54
Economic Profit
Residual Income £0.6500 £0.8000 £1.14 75

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Quality Score breakdown

Overall quality 52/100

Of which business quality 40 · Market factors (momentum, volatility) 48

Profitability 28
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 10
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 100
Share count: buybacks or dilution?

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Revenue & earnings trend

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. 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
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.
+34.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+26.6%
Dividend (yield on the price)7.4%
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.88.7% vs 34.4%, picking up
Profit margin 2019 to 2025 ⓘ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.6% → 8%
2025 sits 2,648% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 7.1%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.

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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.Financial Conglomerates · 53 stocks

Beats the industry median on 6/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 48 · Below median
Fair Value upside +101.4% · Top 25%
Profitability
Return on equity (TTM) 14.8% · Top 25%
Return on assets 1.1% · Below median
Net margin (TTM) 7.1% · Below median
Operating margin (TTM) 20.1% · Above median
Growth and dividend
Revenue growth 19.9% · Above median
Dividend yield (TTM) 7.4% · Top 25%
Balance sheet
Debt / equity 0.34× · Above median

Valuation Multiplesvs Financial Conglomerates median · lower = cheaper

P/E (TTM) 6.5× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 13
FUTURE (revenue growth)100 · sector 73
PAST (return on equity)59 · sector 38
HEALTH (low debt)83 · sector 83
DIVIDEND (yield)100 · sector 56

Context: sector, industry, market

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 Financial Conglomerates stocks, each showing price versus our Fair Value estimate.

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ORIX Corporation IX $39.19 $66.33 +69%
Yuanta Financial Holding 2885 69.20 TWD 20.87 TWD −70%
Bajaj Finserv Ltd BAJAJFINSV ₹1,733 ₹796.21 −54%
China Galaxy Securities Co 601881 ¥11.86 ¥11.49 −3%
Guosen Securities Co 002736 ¥9.84 ¥10.90 +11%
CNPC Capital Company 000617 ¥6.67 ¥7.03 +5%
Aditya Birla Capital Limited ABCAPITAL ₹390.00 ₹226.72 −42%
Freedom Holding FRHC $169.98 $23.80 −86%
Voya Financial, Inc VOYA $97.27 $46.47 −52%
Guangzhou Yuexiu Capital Holdings 000987 ¥7.26 ¥5.63 −22%

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Old Mutual Ltd · Fair Value
£1.18 +50%Fair Value
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Cite: Fair Value Calculator (2026). "Old Mutual Ltd Fair Value". https://www.fairvalue-calculator.com/stock/OMU

Frequently asked questions

Is Old Mutual Ltd (OMU) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of £1.18 versus a price of £0.5860, about +101% upside (undervalued).
What is the fair value of OMU?
Our model-based fair value for Old Mutual Ltd is £1.18 (as of Oct 2, 2026), built from audited fundamentals. The current price: £0.5860.
What is the quality score of OMU?
Old Mutual Ltd 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 price target for Old Mutual Ltd (OMU)?
Our model-based price target is the fair value of £1.18 (as of Oct 2, 2026) from 9 valuation models. Cautious scenario £0.8850, optimistic scenario £1.47. It is a calculation from audited fundamentals, not an analyst target.
What is the Old Mutual Ltd stock forecast for 2026?
Our models put fair value at £1.18, about +101% upside versus a price of £0.5860 (undervalued). Cautious scenario £0.8850, optimistic scenario £1.47. The calculation is refreshed regularly with new filings.
What is the revenue of Old Mutual Ltd (OMU)?
Old Mutual Ltd reported trailing-twelve-month revenue of about 118B ZAR (latest available figure, as of Oct 2, 2026).
Does Old Mutual Ltd pay a dividend?
Old Mutual Ltd currently shows a dividend yield of about 7.41% relative to its recent price (as of Oct 2, 2026).
What is the intrinsic value of Old Mutual Ltd (OMU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Old Mutual Ltd it is £1.18 per share (as of Oct 2, 2026), against a price of £0.5860. It is the blended result of 9 valuation models (cash flow, earnings, asset, dividend).
Is Old Mutual Ltd stock overvalued or undervalued in 2026?
As of Oct 2, 2026, OMU trades below its calculated fair value: price £0.5860, fair value £1.18, a gap of about +101% (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 OMU?
No. The price is what the market pays today (£0.5860); the fair value is what the company's own numbers justify (£1.18). For Old Mutual Ltd the two are £0.5940 per share apart. That gap is exactly why we show both numbers side by side.
How much is Old Mutual Ltd worth?
The market values Old Mutual Ltd at about 2.4B GBX (market capitalisation, as of Oct 2, 2026). Per share that is £0.5860; our models calculate a fair value of £1.18 per share.
What do the bullish and bearish scenarios say about OMU?
Our models span a range for Old Mutual Ltd: cautious scenario £0.8850, base £1.18, optimistic £1.47 per share (as of Oct 2, 2026, price £0.5860). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of OMU?
Old Mutual Ltd trades at a price-to-earnings ratio of 6.5 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £1.18 is built from several models across several years.
How solid is the balance sheet of Old Mutual Ltd (OMU)?
Balance-sheet figures for Old Mutual Ltd (as of Oct 2, 2026): return on equity 14.8%, debt of 0.34 per unit of equity. They feed the Quality Score of 52/100, which measures business quality independently of the share price.
How far is OMU from its 52-week high?
Old Mutual Ltd trades at £0.5860, about 22% below its 52-week high of £0.7486 and 10% above the low of £0.5350 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of £1.18 is for.
Which stocks are comparable to Old Mutual Ltd?
From the same area (Financial Services) we also value ORIX Corporation, Yuanta Financial Holding, Bajaj Finserv Ltd, China Galaxy Securities Co, 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 Old Mutual Ltd stock attractive at the current price?
The data as of Oct 2, 2026: price £0.5860, calculated fair value £1.18 (+101%), Quality Score 52/100, from 9 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 OMU calculated?
We run Old Mutual Ltd through 9 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 £1.18, 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 14.5 % above its aggregate fair value. Old Mutual Ltd currently trades 50 % 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 Old Mutual Ltd (OMU)?
The closing price on Oct 2, 2026 was £0.5860. Our model-based fair value is £1.18, about +101% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Old Mutual Ltd right now?
The price is below even our cautious bear case (£0.8850). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Old Mutual Ltd (OMU) come from?
Earnings per share at Old Mutual Ltd grew +0.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.7 %, EBIT margin +4.1 %, tax rate −3.7 %, residual (interest, one-offs) −1.6 %. 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 Old Mutual Ltd

How large is the market capitalisation of Old Mutual Ltd (OMU)?
The market capitalisation of Old Mutual Ltd is 2.4B GBX. 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 Old Mutual Ltd (OMU)?
The price-to-sales ratio of Old Mutual Ltd is 0.20 (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 Old Mutual Ltd (OMU)?
Earnings per share at Old Mutual Ltd are £0.0900 (price ÷ EPS = P/E 6.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Old Mutual Ltd (OMU)?
The dividend yield of Old Mutual Ltd is 7.4% (payout 48.3%). 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 Old Mutual Ltd (OMU)?
The net margin of Old Mutual Ltd is 3.1% (fiscal year 2025). 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 Old Mutual Ltd (OMU)?
The return on equity (ROE) of Old Mutual Ltd is 14.8% (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 Old Mutual Ltd (OMU)?
On an EBIT basis the return on assets of Old Mutual Ltd is 7.6% (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 Old Mutual Ltd (OMU)?
The operating margin of Old Mutual Ltd is 20.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Old Mutual Ltd (OMU)?
Revenue at Old Mutual Ltd is growing +19.9% versus a year earlier (3y avg +49.1%). 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 Old Mutual Ltd (OMU)?
Earnings per share at Old Mutual Ltd are growing +79.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Old Mutual Ltd (OMU) generate?
The free cash flow of Old Mutual Ltd is −4.8B ZAR (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Old Mutual Ltd (OMU) carry?
The net debt of Old Mutual Ltd is 12.0B ZAR (fiscal year 2025). 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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