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FirstRand Limited (FSR) Fair Value & Analysis

Financial Services · ZA · Market cap 547B ZAC

FL FirstRand Limited FSR · JSE
PriceR99.21
Fair ValueR78.80
Upside-20.6%
Quality46/100
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Expensive Growth
Highly profitable · 32.8% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/14)
Wide moat 78/100
Evidence: High Range R59.11 – R98.51 Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from R101.22 to R78.80 (−22.1%) since Jul 18, 2026. Share price +2.0% over the past month.

Below-average quality, and screening another 21% overvalued on our models.

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.
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Price vs Fair Value (5 years)

R101.51 R37.13 Fair Value R78.80 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R37.13 – R101.51 · fair‑value band R59.11 – R98.51 · the R99.21 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 13, 2026.

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Analysis

FirstRand Limited (FSR) currently trades at R99.21, while our model-based Fair Value estimate is R78.80, implying the stock looks roughly 20.6% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, FirstRand Limited 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 13, 2026

Our scenario range runs from R59.11 (bear case) to R98.51 (bull case); at R99.21, 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. For context, the median of 10 Financial Services peers we cover trades at -15% fair-value upside, at -21%, FSR screens richer 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.

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 R51.87 R64.74 R184.96 76
Gordon GGM R44.71 R97.62 R164.24 70
P/E Multiple R75.92 R101.22 R126.53 63
All 6 models by family
Dividend Discount
Gordon GGM R44.71 R97.62 R164.24 70
DDM Multi-Stage R44.71 R79.96 R101.73 61
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 50
Economic Profit
Residual Income R51.87 R64.74 R184.96 76

Widest divergence: Dividend Discount (R79.96) versus Asset-Based (R28.22). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 139B ZAC
Revenue growth (YoY) +9.9%
Net margin 32.8%
Return on equity 19.9%
Free cash flow −125B ZAC FY2025
P/E ratio 12.6
More key figures
Operating margin 44.2%
EPS (TTM) R7.86
Dividend yield 0.1%
EPS growth (YoY) +10.0%
Net debt 111B ZAC FY2025

Figures from reported company fundamentals · as of Aug 13, 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 62
Price trend over the last 3–12 months (market factor)
52W Momentum 88
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.

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 Limited reported revenue of R270B in FY2025 versus R159B in FY2021, a compound +14.1%/yr. Reported net income was R43.5B 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. 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. 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. 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%
Revenue +14.1%/yr
FY21 R159B
FY22 R166B
FY23 R132B
FY24 R258B
FY25 R270B
Net income +12.2%/yr
FY21 R27.5B
FY22 R33.6B
FY23 R45.2B
FY24 R39.7B
FY25 R43.5B
Character of growth · EPS growth decomposed (2014-2025) +8.0 % p.a.
Revenue per share +7.8 pp

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

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

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

FSR screens 21% overvalued. Compare with JPMorgan Chase & Co →

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

Peer Group

Banks - Diversified · 47 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 −20% · 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) 0.1% · Bottom 25%
Debt / equity 0.10× · Lower than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 12.6× · 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

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.

VALUE 6 · sector 19
FUTURE 50 · sector 25
PAST 79 · sector 42
HEALTH 95 · sector 52
DIVIDEND 1 · sector 67

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

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

Similar stocks

10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $365.18 $217.97 -40%
Bank of America Corporation BAC $64.81 $50.87 -22%
China Construction Bank Corporation 601939 ¥10.24 ¥18.21 +78%
Industrial and Commercial Bank of China Limited 601398 ¥7.52 ¥14.44 +92%
HSBC Holdings HBCN 1,610 MXN 1,364 MXN -15%
Agricultural Bank of China Limited 601288 ¥6.56 ¥12.94 +97%
Bank of China Limited 601988 ¥5.83 ¥11.24 +93%
Banco Santander, S.A SAN 55.29 PLN 31.78 PLN -43%
UBS Group UBSN 939.75 MXN 565.49 MXN -40%
Barclays PLC BCSN 475.00 MXN 332.60 MXN -30%

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Frequently asked questions

Is FirstRand Limited (FSR) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R78.80 versus a price of R99.21, about −21% (overvalued).
What is the fair value of FSR?
Our model-based fair value for FirstRand Limited is R78.80 (as of Aug 13, 2026), built from audited fundamentals. The current price is R99.21.
What is the quality score of FSR?
FirstRand Limited 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 Limited (FSR)?
FirstRand Limited reported trailing-twelve-month revenue of about 139B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of FSR?
The net profit margin of FirstRand Limited is about 32.8%, meaning it keeps roughly 32.8% of revenue as net income. Based on the latest reported figures.
Does FirstRand Limited pay a dividend?
FirstRand Limited currently shows a dividend yield of about 0.06% relative to its recent price (as of Aug 13, 2026).

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.

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