Netwealth Group Ltd

NWL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$57.90	Sltl	Hhzcnzp

Netwealth’s First-Half Margin Jump Is Unlikely to Be Sustained Into the Second Half

Feb 17, 2021

We’ve largely maintained our earnings forecasts for no-moat-rated Netwealth following its strong first-half result. However, the time value of money increases our fair value estimate by 3% to AUD 6.20 per share. At the current market price of AUD 16.75, we continue to believe Netwealth is significantly overvalued. The share price implies a fiscal 2022 price/earnings ratio of 59, versus 22 at our fair value.

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