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PPT:ASXPerpetual Limited Analysis

Data as of 2026-03-16 - not real-time

A$16.53

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Perpetual is trading well below its DCF-derived fair value, with the current price comfortably under the 20‑day and 50‑day moving averages and a RSI that sits in the lower‑mid range, suggesting limited upside momentum in the short run.
Fundamentally, the company posted a solid 12% rise in underlying profit and modest revenue growth in the first half of FY26, while maintaining an attractive dividend yield that exceeds six percent. However, the payout ratio is well above 200%, raising questions about the sustainability of that dividend. The recent strategic move to sell its wealth business to Bain Capital could unlock value and sharpen focus on core asset‑management operations.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish technical indicators (price below SMA, negative MACD)
  • High dividend yield but unsustainable payout
  • Recent profit growth and strategic divestiture

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Significant valuation gap to DCF fair value
  • Potential cash infusion and focus shift from wealth business sale
  • Stable cash flow generation and attractive dividend

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong asset‑management franchise with diversified revenue streams
  • Long‑term upside from lower valuation and earnings improvement
  • Resilient balance sheet despite moderate leverage

Key Metrics & Analysis

Financial Health

Revenue Growth1.60%
Profit Margin-1.16%
P/E Ratio9.5
ROE-0.96%
ROA3.48%
Debt/Equity56.41
P/B Ratio1.2
Op. Cash FlowA$253.2M
Free Cash FlowA$252.1M
Industry P/E16.5

Technical Analysis

TrendBearish
RSI38.8
SupportA$16.10
ResistanceA$18.72
MA 20A$17.39
MA 50A$17.93
MA 200A$19.21
MACDBearish
VolumeStable
Fear & Greed Index79.02

Valuation

Fair ValueA$26.73
Target PriceA$20.75
Upside/Downside25.53%
GradeUndervalued
TypeValue
Dividend Yield6.84%

Risk Assessment

Beta0.84
Volatility38.73%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.