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Firstrand Ltd (FSR) Fair Value & Analysis

Financial Services · ZA · Market cap 547B ZAC · ISIN ZAE000066304

What is Firstrand Ltd really worth?

FL Firstrand Ltd FSR · JSE
PriceR97.23
Fair ValueR78.80
Upside−19.0%
Quality46/100

Below-average quality, and trading another 23% above our fair value of R78.80.

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Strengths

Highly profitable · 32.8% net margin
Wide moat 78/100

Risks

!Expensive Growth (revenue 5y +9.6 %/yr)
!Low debt · negative free cash flow
!Mixed vs. peers (7/14)
!Weak on valuation: 8 out of 100
Evidence: High Range R59.11 – R98.51

Fair value as of: Aug 27, 2026

From 6 valuation models · updated 9 days ago

Share price −3.4% over the past month.

What runs behind every stock

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

What matters now

  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
  • 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)

R101.51 R38.59 Fair Value R78.80 May 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 R38.59 – R101.51 · fair‑value band R59.11 – R98.51 · the R97.23 price screens above the R78.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Firstrand Ltd (FSR) currently trades at R97.23, while our model-based Fair Value estimate is R78.80, implying the stock looks roughly 23.4% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Financial Services sector. Bull case: the Dividend Discount group reads highest at a median of R79.96 per share, and 2 of the 6 models we run sit above the R97.23 price. Bear case: the Asset-Based group reads lowest at R28.22, and 4 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Firstrand Ltd generated revenue of 139B ZAR at a net margin of 32.8%. Revenue grew 9.9% year over year. It earns a return on equity of 19.9%. Net debt stands at 111B ZAR. Fundamentals as of Aug 27, 2026

Our scenario range runs from R59.11 (bear case) to R98.51 (bull case); at R97.23, the current price sits within 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. For context, the median of 10 Financial Services peers we cover trades at −8% fair-value upside, at −19%, FSR 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 2.80 ZAR per share, which is 3.6 % 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
DDM Multi-Stage R44.71 R79.96 R101.73 66
Residual Income R51.87 R64.74 R184.96 66
Gordon GGM R44.71 R97.62 R164.24 65
All 6 models by family
Dividend Discount
Gordon GGM R44.71 R97.62 R164.24 65
DDM Multi-Stage R44.71 R79.96 R101.73 66
Multiples
P/E Multiple R75.92 R101.22 R126.53 63
P/B Multiple R44.23 R58.97 R73.72 55
Asset-Based
NCAV (Graham) R21.06 R28.22 R42.12 54
Economic Profit
Residual Income R51.87 R64.74 R184.96 66

Widest divergence: Dividend Discount (R79.96) versus Asset-Based (R28.22). Highest evidence: DDM Multi-Stage (66).

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Key figures & financial health

P/E ratio 12.4
P/S ratio 1.99 P/E × margin
EPS (TTM) R7.86 price ÷ EPS = P/E 12.4
Dividend yield 5.2% payout 64.4%
Net margin 16.1% FY2025
Return on equity 19.9% TTM
More key figures
Profitability
Return on assets (EBIT) 2.2% avg 5y
Operating margin 44.2% TTM
Growth
Revenue (TTM) 139B ZAR TTM
Revenue growth (YoY) +9.9% 3y avg +17.6%
EPS growth (YoY) +10.0%
Balance sheet & cash flow
Free cash flow −125B ZAC FY2025
Net debt 111B ZAC FY2025

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 36 · Market factors (momentum, volatility) 76

Profitability 35
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 85
Distance to the 52-week high (market factor)
Net Issuance 82
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

FirstRand Limited, together with its subsidiaries, provides transactional, lending, investment, and insurance products and services in South Africa, rest of Africa, the United Kingdom, and internationally. It operates in Retail and Commercial, and Corporate and Institutional segments.

Full company description

FirstRand Limited, together with its subsidiaries, provides transactional, lending, investment, and insurance products and services in South Africa, rest of Africa, the United Kingdom, and internationally. It operates in Retail and Commercial, and Corporate and Institutional segments. The company offers deposits and savings products; personal loans; and asset and invoice finance, as well as SME commercial, residential, and buy-to-let mortgages. It also provides life and short-term insurance products; and vehicle finance, instalment credit and fleet management, and corporate and investment banking services. In addition, the company offers asset management, as well as vehicle-related insurance services. Further, it provides franchise advisory, market risk management, capital market flow, and trading and structuring services. It serves retail and public sector customers, small and medium-sized enterprises, businesses, agricultural industry, medium corporates, and institutions. The company was incorporated in 1966 and is based in Sandton, South Africa.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Firstrand Ltd reported revenue of 270B ZAR in FY2025 versus 159B ZAR in FY2021, a compound +14.1%/yr. Reported net income was 43.5B ZAR in FY2025, compounding +12.2%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
270B ZAR
Latest YoY
+5.0%
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.
+17.6%
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.
+9.6%
Avg. revenue growth/yr (22Y) 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.
+9.9%
Value creation/yr (5Y, in ZAR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+14.8% (9.6 + 5.2)
Revenue +14.1%/yr
FY21 159B ZAR
FY22 166B ZAR
FY23 132B ZAR
FY24 258B ZAR
FY25 270B ZAR
Net income +12.2%/yr
FY21 27.5B ZAR
FY22 33.6B ZAR
FY23 45.2B ZAR
FY24 39.7B ZAR
FY25 43.5B ZAR
Character of growth · EPS growth decomposed (2014-2025) +8.0 % p.a.
Revenue per share +7.8 %

of which total revenue +7.9 % · buybacks/dilution −0.1 %

EBIT margin +0.1 %
Tax rate +0.1 %
Residual (interest, one-offs) +0.1 %

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).

FSR screens 23% overvalued. Compare with JPMorgan Chase & Co →

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

Peer Group

Banks - Diversified · 48 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 45 · Bottom 25%
Fair Value upside −19% · Below median
Return on equity (TTM) 20% · Top 25%
Return on assets 2% · Top 25%
Net margin (TTM) 33% · Below median
Operating margin (TTM) 44% · Below median
Revenue growth 10% · Above median
Dividend yield (TTM) 5.2% · Top 25%
Debt / equity 0.10× · Lower than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 12.4× · Cheaper than median
P/B 2.32× · Pricier than 75% of peers
P/S (TTM) 3.92× · Pricier than median
EV/EBITDA 7.5× · Cheaper than median
PEG 48.46× · Pricier than 75% of peers

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
VALUE8 · sector 14
FUTURE50 · sector 25
PAST79 · sector 42
HEALTH95 · sector 48
DIVIDEND100 · sector 70

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 Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $354.22 $217.97 −38%
Bank of America Corporation BAC $61.17 $50.87 −17%
China Construction Bank Corporation 601939 ¥10.55 ¥18.21 +73%
Industrial and Commercial Bank of China Limited 601398 ¥7.86 ¥14.44 +84%
HSBC Holdings HSBC $103.14 $75.89 −26%
Agricultural Bank of China Limited 601288 ¥6.79 ¥12.94 +91%
Royal Bank of Canada RY C$283.11 C$151.80 −46%
Bank of China Limited 601988 ¥6.14 ¥11.24 +83%
Wells Fargo & Company WFC $86.69 $79.60 −8%
Mitsubishi UFJ Financial Group MUFG $22.90 $20.50 −10%

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Frequently asked questions

Is Firstrand Ltd (FSR) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of R78.80 versus a price of R97.23, about −19% upside (overvalued).
What is the fair value of FSR?
Our model-based fair value for Firstrand Ltd is R78.80 (as of Aug 27, 2026), built from audited fundamentals. The current price: R97.23.
What is the quality score of FSR?
Firstrand Ltd has a Quality Score of 46/100. 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 Firstrand Ltd (FSR)?
Firstrand Ltd reported trailing-twelve-month revenue of about 139B ZAR (latest available figure, as of Aug 27, 2026).
What is the net profit margin of FSR?
The net profit margin of Firstrand Ltd is about 32.8%, meaning it keeps roughly 32.8% of revenue as net income. Based on the latest reported figures.
Does Firstrand Ltd pay a dividend?
Firstrand Ltd currently shows a dividend yield of about 5.20% relative to its recent price (as of Aug 27, 2026).
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