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National Australia Bank Ltd (NAB) Fair Value & Analysis

Financial Services · AU · Market cap A$120B (≈ $86.7B) · ISIN AU000000NAB4

What is National Australia Bank Ltd really worth?

NA National Australia Bank Ltd NAB · AU
PriceA$39.25
Fair ValueA$27.45
Upside−30.1%
Quality56/100

A solid business, but trading 43% above our fair value of A$27.45.

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Strengths

Highly profitable · 29.7% net margin
Wide moat 68/100

Risks

!Mixed Growth (revenue 5y +18.0 %/yr)
!High debt · generates free cash flow
!Trails peers (5/15)

For context

·4.33% dividend yield
Evidence: High Range A$20.59 – A$34.32

Fair value as of: Sep 5, 2026

From 4 valuation models · updated today

Share price −5.6% over the past month.

What runs behind every stock

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

What matters now

  • The price sits above even our optimistic bull case (A$34.32). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) 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)

A$48.06 A$19.98 Fair Value A$27.45 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range A$19.98 – A$48.06 · fair‑value band A$20.59 – A$34.32 · the A$39.25 price screens above the A$27.45 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

National Australia Bank Ltd (NAB) currently trades at A$39.25, while our model-based Fair Value estimate is A$27.45, implying the stock looks roughly 43.0% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of A$28.70 per share, and 0 of the 4 models we run sit above the A$39.25 price. Bear case: the Asset-Based group reads lowest at A$13.77, and 4 of the 4 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, National Australia Bank Ltd generated revenue of A$20.6B at a net margin of 29.7%. Revenue grew 8.7% year over year. It earns a return on equity of 9.9%. Net debt stands at A$290B. Fundamentals as of Sep 5, 2026

Our scenario range runs from A$20.59 (bear case) to A$34.32 (bull case); at A$39.25, 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 about 19% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −8% fair-value upside, at −30%, NAB screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly A$0.2786 per share, which is 1.0 % 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
Residual Income best evidence A$18.42 A$20.87 A$36.32 74
P/E Multiple A$21.53 A$28.70 A$35.88 63
P/B Multiple A$21.58 A$28.78 A$35.97 55
All 4 models by family
Multiples
P/E Multiple A$21.53 A$28.70 A$35.88 63
P/B Multiple A$21.58 A$28.78 A$35.97 55
Asset-Based
NCAV (Graham) A$10.28 A$13.77 A$20.55 54
Economic Profit
Residual Income best evidence A$18.42 A$20.87 A$36.32 74

Widest divergence: Multiples (A$28.70) versus Asset-Based (A$13.77). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 19.6
P/S ratio 2.20 P/E × margin
EPS (TTM) A$2.00 price ÷ EPS = P/E 19.6
Dividend yield 4.3% payout 85.0%
Net margin 11.2% FY2025
Return on equity 9.9% TTM
More key figures
Profitability
Return on assets (EBIT) 0.9% avg 5y
Operating margin 52.5% TTM
Growth
Revenue (TTM) A$20.6B TTM
Revenue growth (YoY) +8.7% 3y avg +32.6%
EPS growth (YoY) +19.9%
Balance sheet & cash flow
Free cash flow A$7.1B FY2025
Net debt A$290B FY2025 · ≈ 40.8 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 47 · Market factors (momentum, volatility) 49

Profitability 25
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 1
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 100
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

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Europe, Asia, the United States, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments.

Full company description

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Europe, Asia, the United States, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and self-managed super funds, cash management, and financial advice services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry-specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

National Australia Bank Ltd reported revenue of A$60.2B in FY2025 versus A$20.9B in FY2021, a compound +30.3%/yr. Reported net income was A$6.8B in FY2025, compounding +1.5%/yr from FY2021.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$60.2B
Latest YoY
−3.1%
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.
+32.6%
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.
+18.0%
Avg. revenue growth/yr (36Y) 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.
+5.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.6% (6.3 + 4.3)
Revenue +30.3%/yr
FY21 A$20.9B
FY22 A$25.9B
FY23 A$51.9B
FY24 A$62.2B
FY25 A$60.2B
Net income +1.5%/yr
FY21 A$6.4B
FY22 A$6.9B
FY23 A$7.4B
FY24 A$7.0B
FY25 A$6.8B
Character of growth · EPS growth decomposed (2014-2025) +3.8 % p.a.
Revenue per share +1.6 %

of which total revenue +4.3 % · buybacks/dilution −2.5 %

EBIT margin −2.7 %
Tax rate +1.8 %
Residual (interest, one-offs) +3.1 %

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).

NAB screens 43% overvalued. Compare with JPMorgan Chase & Co →

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Cite: Fair Value Calculator (2026). "National Australia Bank Ltd Fair Value". https://www.fairvalue-calculator.com/stock/NAB

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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 56 · Above median
Fair Value upside −30% · Bottom 25%
Return on equity (TTM) 10% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 30% · Below median
Operating margin (TTM) 52% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 4.3% · Above median
Debt / equity 3.49× · Higher than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 19.6× · Pricier than 75% of peers
P/B 1.38× · Cheaper than median
P/S (TTM) 4.22× · Pricier than 75% of peers
P/FCF 12.2× · Pricier than 75% of peers
EV/EBITDA 29.6× · Pricier than 75% of peers
PEG 2.34× · 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
VALUE0 · sector 14
FUTURE44 · sector 25
PAST40 · sector 42
HEALTH0 · sector 48
DIVIDEND87 · sector 70

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

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 Sep 5, 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 National Australia Bank Ltd (NAB) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of A$27.45 versus a price of A$39.25, about −30% upside (overvalued).
What is the fair value of NAB?
Our model-based fair value for National Australia Bank Ltd is A$27.45 (as of Sep 5, 2026), built from audited fundamentals. The current price: A$39.25.
What is the quality score of NAB?
National Australia Bank Ltd has a Quality Score of 56/100. 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 National Australia Bank Ltd (NAB)?
National Australia Bank Ltd reported trailing-twelve-month revenue of about A$20.6B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of NAB?
The net profit margin of National Australia Bank Ltd is about 29.7%, meaning it keeps roughly 29.7% of revenue as net income. Based on the latest reported figures.
Does National Australia Bank Ltd pay a dividend?
National Australia Bank Ltd currently shows a dividend yield of about 4.33% relative to its recent price (as of Sep 5, 2026).
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