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Codan Ltd (CDA) Fair Value & Analysis

Technology · AU · Market cap A$7.9B (≈ $5.7B) · ISIN AU000000CDA3

What is Codan Ltd really worth?

CL Codan Ltd CDA · AU
PriceA$46.50
Fair ValueA$15.47
Upside−66.7%
Quality71/100

A solid business, but trading 201% above our fair value of A$15.47.

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Strengths

Healthy Growth (revenue 5y +14.1 %/yr)
Solidly profitable · 16.9% net margin
Low debt · generates free cash flow
Wide moat 77/100

Risks

!Mixed vs. peers (7/15)
!Weak on dividend: 15 out of 100

For context

·0.76% dividend yield
Evidence: High Range A$9.18 – A$19.51

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 9 days ago

Share price +16.0% 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$19.51). The favourable scenario is already priced in.
  • A fairly wide model range (A$9.18 to A$19.51) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

A$49.92 A$3.48 Fair Value A$15.47 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range A$3.48 – A$49.92 · fair‑value band A$9.18 – A$19.51 · the A$46.50 price screens above the A$15.47 fair value. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Codan Ltd (CDA) currently trades at A$46.50, while our model-based Fair Value estimate is A$15.47, implying the stock looks roughly 200.6% overvalued today. The Quality Score stands at 71/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of A$17.49 per share, and 0 of the 26 models we run sit above the A$46.50 price. Bear case: the Asset-Based group reads lowest at A$1.93, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Codan Ltd generated revenue of A$762M at a net margin of 16.9%. Revenue grew 28.8% year over year. It earns a return on equity of 24.4%. Net debt stands at A$121M. Fundamentals as of Aug 27, 2026

Our scenario range runs from A$9.18 (bear case) to A$19.51 (bull case); at A$46.50, 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 161% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −55% fair-value upside, at −67%, CDA 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$0.3450 per share, which is 2.2 % of the fair value. 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
FCF DCF A$9.23 A$17.49 A$31.87 77
Growth DCF A$9.06 A$16.33 A$28.38 76
EPV A$4.31 A$5.06 A$5.71 74
All 26 models by family
DCF Models
FCF DCF A$9.23 A$17.49 A$31.87 77
Owner Earnings A$8.86 A$16.78 A$30.61 73
5Y Revenue Exit A$6.93 A$12.33 A$19.70 71
5Y EBITDA Exit A$10.31 A$19.51 A$31.32 73
5Y P/E Exit A$10.21 A$19.30 A$29.97 69
10Y Revenue Exit A$7.42 A$12.82 A$21.26 65
10Y EBITDA Exit A$9.85 A$18.06 A$31.05 66
10Y P/E Exit A$9.79 A$17.91 A$29.91 62
Earnings-Based
Graham-Dodd A$3.87 A$19.84 A$27.42 64
Lynch FV A$5.41 A$7.73 A$10.05 61
PEG = 1.0 A$5.41 A$7.73 A$10.05 57
EPV A$4.31 A$5.06 A$5.71 74
Dividend Discount
Gordon GGM A$2.15 A$4.28 A$6.48 67
DDM Multi-Stage A$2.15 A$3.70 A$4.52 67
Multiples
P/E Multiple A$11.95 A$15.93 A$19.92 63
P/S Multiple A$7.26 A$9.67 A$12.09 58
P/B Multiple A$7.26 A$9.67 A$12.09 55
EV/EBIT A$11.97 A$16.11 A$20.24 66
EV/EBITDA A$11.67 A$15.71 A$19.74 67
EV/Revenue A$5.84 A$8.53 A$11.22 53
Asset-Based
NCAV (Graham) A$1.44 A$1.93 A$2.88 54
Growth DCF
Growth DCF A$9.06 A$16.33 A$28.38 76
Rev-Margin DCF A$6.93 A$12.20 A$19.24 71
Economic Profit
Residual Income A$3.55 A$4.57 A$14.76 64
ROIC Compounder A$4.91 A$6.85 A$9.48 71
Growth Earnings
Growth-Adj P/E A$9.57 A$13.67 A$17.77 67

Widest divergence: DCF Models (A$17.49) versus Asset-Based (A$1.93). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 66.4
P/S ratio 10.2 P/E × margin
EPS (TTM) A$0.7000 price ÷ EPS = P/E 66.4
Dividend yield 0.8% payout 50.7%
Net margin 15.3% FY2025
Return on equity 24.4% TTM
More key figures
Profitability
Return on assets (EBIT) 18.2% avg 5y
Operating margin 25.3% TTM
Growth
Revenue (TTM) A$762M TTM
Revenue growth (YoY) +28.8% 3y avg +10.0%
EPS growth (YoY) +54.2%
Balance sheet & cash flow
Free cash flow A$138M FY2025
Net debt A$121M FY2025 · ≈ 0.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 70 · Market factors (momentum, volatility) 67

Profitability 67
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 33
Calm price path (market factor)
Momentum 72
Price trend over the last 3–12 months (market factor)
52W Momentum 98
Distance to the 52-week high (market factor)
Net Issuance 80
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

Codan Limited develops technology solutions for United Nations organizations, security and military agencies, government departments, corporates, individuals consumers, and small-scale miners. It operates through Communications and Metal Detection segments.

Full company description

Codan Limited develops technology solutions for United Nations organizations, security and military agencies, government departments, corporates, individuals consumers, and small-scale miners. It operates through Communications and Metal Detection segments. The Communications segment designs, develops, manufactures, and markets communication equipment that consists of DTC radio solutions for the wireless transmission of video and other data applications; and Zetron communications solutions. The Metal Detection segment designs, develops, manufactures, and markets metal detection equipment, such as handheld metal detecting technologies for recreational, gold mining, demining, and military markets. The company sells its products through a network of dealers, distributors, and agents in Australia, Canada, Denmark, the United Kingdom, the United States, Brazil, India, Ireland, Mexico, Singapore, the United Arab Emirates, and internationally. Codan Limited was incorporated in 1959 and is headquartered in Mawson Lakes, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Codan Ltd reported revenue of A$674M in FY2025 versus A$437M in FY2021, a compound +11.4%/yr. Reported net income was A$103M in FY2025, compounding +3.5%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$674M
Latest YoY
+22.5%
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.
+10.0%
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.
+14.1%
Avg. revenue growth/yr (25Y) 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.
+8.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.8% (10.0 + 0.8)
Revenue +11.4%/yr
FY21 A$437M
FY22 A$506M
FY23 A$456M
FY24 A$550M
FY25 A$674M
Net income +3.5%/yr
FY21 A$90.4M
FY22 A$101M
FY23 A$67.8M
FY24 A$81.4M
FY25 A$103M
Character of growth · EPS growth decomposed (2014-2025) +23.4 % p.a.
Revenue per share +15.6 %

of which total revenue +15.9 % · buybacks/dilution −0.2 %

EBIT margin +4.5 %
Tax rate −0.3 %
Residual (interest, one-offs) +2.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CDA screens 201% overvalued. Compare with Keysight Technologies, Inc →

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Cite: Fair Value Calculator (2026). "Codan Ltd Fair Value". https://www.fairvalue-calculator.com/stock/CDA

Peer Group

Scientific & Technical Instruments · 164 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 71 · Top 25%
Fair Value upside −67% · Below median
Return on equity (TTM) 24% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 25% · Top 25%
Revenue growth 29% · Top 25%
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.23× · Higher than 75% of peers

Valuation Multiples vs Scientific & Technical Instruments median · lower = cheaper

P/E (TTM) 66.4× · Pricier than median
P/B 10.89× · Pricier than 75% of peers
P/S (TTM) 7.49× · Pricier than 75% of peers
P/FCF 41.3× · Pricier than 75% of peers
EV/EBITDA 30.5× · Pricier than median
PEG 1.10× · Cheaper 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 0
FUTURE100 · sector 32
PAST97 · sector 24
HEALTH89 · sector 98
DIVIDEND15 · sector 21

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

Insider activity: 40/100

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 Scientific & Technical Instruments stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Keysight Technologies, Inc KEYS $316.13 $107.22 −66%
Garmin Ltd GRMN $309.98 $139.44 −55%
Teledyne Technologies Incorporated TDY $607.87 $488.95 −20%
Chroma ATE Inc 2360 2,195 TWD 322.57 TWD −85%
Hexagon AB HEXAB kr 99.00 kr 74.09 −25%
MKS Inc MKSI $281.60 $76.00 −73%
AVIC Chengdu Aircraft Company 302132 ¥60.00 ¥24.39 −59%
Fortive Corporation FTV $61.54 $33.48 −46%
Trimble Inc TRMB $56.99 $34.12 −40%
Cognex Corporation CGNX $60.79 $19.25 −68%

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Frequently asked questions

Is Codan Ltd (CDA) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of A$15.47 versus a price of A$46.50, about −67% upside (overvalued).
What is the fair value of CDA?
Our model-based fair value for Codan Ltd is A$15.47 (as of Aug 27, 2026), built from audited fundamentals. The current price: A$46.50.
What is the quality score of CDA?
Codan 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 revenue of Codan Ltd (CDA)?
Codan Ltd reported trailing-twelve-month revenue of about A$762M (latest available figure, as of Aug 27, 2026).
What is the net profit margin of CDA?
The net profit margin of Codan Ltd is about 16.9%, meaning it keeps roughly 16.9% of revenue as net income. Based on the latest reported figures.
Does Codan Ltd pay a dividend?
Codan Ltd currently shows a dividend yield of about 0.76% relative to its recent price (as of Aug 27, 2026).
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