ASX Remains Overvalued Following Soft First-Half Result

Wide-moat-rated ASX Limited’s first-half financial result was relatively weak but broadly in line with our expectations. We’ve made minor adjustments to our short-term earnings forecasts, but our long-term forecasts are largely unchanged. We’ve increased our fair value estimate slightly, to AUD 60 per share, based on broadly similar earnings forecasts combined with the time-value-of-money uplift. However, at the current market price of AUD 70.05, ASX still looks overvalued, despite falling 23% since its record high last September.