Perpetual Ltd

PPT: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$79.50	Gcgpt	Cjnlxtml

Perpetual: Market Doubts on Flows and Margins Unfounded; Shares Cheap

Shaun Ler

Oct 15, 2023

We lower our fair value estimate for narrow-moat Perpetual by 10% to AUD 27.50 per share, due to reduced projected base fee margins in the asset management business. Our prior forecast fee compression was too gradual and did not fully reflect competitive pressures from passive options and unlisted investments. However, despite our fair value cut, Perpetual remains substantially undervalued.

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