Pepper Money Limited (PPM) Fair Value & Analysis

Financial Services · AU · Market cap A$732M

Below-average quality, screening 66% undervalued on our models.

What matters now

• The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
• The price is below even our cautious bear case (A$2.27). The market is more pessimistic than our downside scenario.
• 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)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range A$0.7955 – A$2.40 · fair‑value band A$2.27 – A$3.78 · the A$1.83 price screens below the A$3.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Pepper Money Limited (PPM) currently trades at A$1.83, while our model-based Fair Value estimate is A$3.03, implying the stock looks roughly 65.6% undervalued today. The Quality Score stands at 41/100 (below-average 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, Pepper Money Limited generated revenue of A$397M at a net margin of 26.4%. Revenue grew 4.1% year over year. It earns a return on equity of 12.1%. Net debt stands at A$16.1B. Fundamentals as of Jul 16, 2026

Our scenario range runs from A$2.27 (bear case) to A$3.78 (bull case); at A$1.83, the current price sits below 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 about 27% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at 66%, PPM screens cheaper 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.

Widest divergence: Earnings-Based (A$8.15) versus Asset-Based (A$1.30). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Pepper Money Limited operates as a non-bank lender in the mortgage and asset finance markets in Australia and New Zealand. It operates through three segments: Mortgages, Asset Finance, and Loan and Other Servicing.

Full company description

Pepper Money Limited operates as a non-bank lender in the mortgage and asset finance markets in Australia and New Zealand. It operates through three segments: Mortgages, Asset Finance, and Loan and Other Servicing. The Mortgages segment engages in the financing for residential home loans, small balance commercial real estate loans, and self-managed super fund mortgages. The Asset Finance segment finances a range of asset types for consumer and commercial customers. The Loan and Other Servicing segment provides independent loan servicing for mortgages, and asset finance and personal loans. It also offers auto and equipment finance, novated leases, and third-party loan services. The company was formerly known as Pepper Group Pty Limited. The company was incorporated in 2000 and is based in North Sydney, Australia. Pepper Money Limited is a subsidiary of Pepper Group Anz Holdco Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pepper Money Limited reported revenue of A$1.4B in FY2025 versus A$771M in FY2021, a compound +17.1%/yr. Reported net income was A$105M in FY2025, compounding −3.5%/yr from FY2021.

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Peer Group

Credit Services · 333 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.

Valuation Multiples vs Credit Services median · lower = cheaper

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.

Values & ESG

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

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

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Frequently asked questions

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.