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.
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 yearNeutral
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 yearsPositive
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 yearsPositive
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
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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.