Challenger Ltd
OTC:CFIGF

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Challenger Ltd
OTC:CFIGF
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Price: 5.6 USD Market Closed
Market Cap: $3.9B

EV/OCF

3.5
Current
56%
Cheaper
vs 3-y average of 8

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
3.5
=
Enterprise Value
$6.5B
/
Operating Cash Flow
AU$1.9B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
3.5
=
Enterprise Value
$6.5B
/
Operating Cash Flow
AU$1.9B

Valuation Scenarios

Challenger Ltd is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (8), the stock would be worth $12.86 (130% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+399%
Average Upside
233%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 3.5 $5.6
0%
3-Year Average 8 $12.86
+130%
5-Year Average 6.9 $11.14
+99%
Industry Average 17.4 $27.97
+399%
Country Average 14.1 $22.63
+304%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close

Market Distribution

Lower than 96% of companies in Australia
Percentile
4rd
Based on 1 376 companies
4rd percentile
2.3
Low
0 — 9.3
Typical Range
9.3 — 24.1
High
24.1 —
Distribution Statistics
Australia
Min 0
30th Percentile 9.3
Median 14.1
70th Percentile 24.1
Max 9 251.5

Challenger Ltd
Glance View

Market Cap
3.9B USD
Industry
Financial Services

In the bustling corridors of Sydney's financial district, Challenger Ltd. stands as a beacon of focused specialization in the realm of financial services. Founded in 1985, Challenger has adeptly crafted its niche within the annuity and retirement income space, positioning itself as a crucial player catering to Australia's expanding retiree demographic. The core of its business revolves around providing retirees with reliable income streams through annuity products, offering peace of mind in exchange for upfront payments. By investing these funds in a diverse range of assets - from fixed income securities to commercial real estate - Challenger works diligently to generate returns that exceed the promises it makes to its clients. This proactive asset management strategy is the bedrock of its revenue creation, ensuring the company not only meets its obligations but also delivers shareholder value. Beyond generating robust returns for its annuitants and leveraging its extensive portfolio management expertise, Challenger has expanded its horizons through its Fidante Partners business. This division acts as a multi-boutique funds management franchise, bringing together aligned interest managers who focus on varied investment strategies. By fostering these affiliations, Fidante Partners fortifies Challenger's position in the funds management arena while securing additional revenue streams. This, coupled with its prudently managed annuities business, underpins Challenger's financial robustness and its growth trajectory. The synergy between its structured, risk-averse annuity offerings and its dynamic funds management activities allows Challenger to remain a dependable and adaptable force in Australia's financial sector.

CFIGF Intrinsic Value
5.05 USD
Overvaluation 10%
Intrinsic Value
Price $5.6
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