National Australia Bank Limited (NAB.AX)

DDM Valuation · Financial Services · Banks - Diversified

Valuation as at 2026-08-04 · refreshed with the ASX 300 Most Undervalued screen

About National Australia Bank Limited

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, Europe, Asia, the United States, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

National Australia Bank Limited NAB.AX

Financial Services · Banks - Diversified

Price
$42.85
Market Cap
$131.18B
Dividend Yield
4.1%
Beta
0.72
P/E (TTM)
21.4x
52-Week Range
$35.48–$49.45

NAB.AX's price & financial trends

Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn’t required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.

Data refreshed 2026-08-04

Share price · last 2 years

$42.85 +12% vs first period
ASX 200 $38.17$40.14$39.36$39.85$39.88$42.85 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted)

$2.20 +7% vs first period
$2.06$2.29$2.23$2.20FY22FY23FY24FY25

Return on equity

11.3% +12% vs first period
10.1%11.7%12.1%11.3%FY21FY22FY23FY24

Dividend per share

$1.50 +26% vs first period
$1.20$1.34$1.50FY22FY23FY24

🏦 Bank/Insurer — valued with the Dividend Discount Model

DCF is not used for bank/insurer stocks: deposits or reserves are a raw material rather than funding, so there's no clean free cash flow. This valuation uses the Dividend Discount Model (DDM) instead.

P/B
2.17x
ROE
9.9%
Div Yield
4.1%

Intrinsic value estimate · 5-year forecast

BEAR
$22.39
vs current $42.85
-47.8% ❌ Overvalued
BASE
$28.08
vs current $42.85
-34.5% ❌ Overvalued
BULL
$36.10
vs current $42.85
-15.8% ⚠️ Fairly Valued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Risk-free rate
4.80% ● LIVE
Live 10-yr govt bond
Beta
0.72
Floored for non-US stocks
Equity risk premium
6.00%
Market-specific seed
Debt component
None
DDM discounts dividends at cost of equity only
Starting dividend (D0)
$1.70
Annual, per share
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
Dividend growth2.0%4.0%6.0%
Terminal growth2.5%2.5%2.5%
Cost of equity10.12%9.12%8.12%

Cost of Equity (CAPM) = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.72 × 6.00% = 9.12%

These numbers come from running National Australia Bank Limited's dividends through the mechanical DDM formula and assumptions above — not from any view on the news, management, or NAB.AX's competitive position. What is DDM?

Want to test your own dividend growth or cost-of-equity assumptions?Open the full interactive calculator, pre-filled with NAB.AX →

More ASX 300 Most Undervalued stocks

Not financial advice. DDM valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Refreshed on the same cycle as the ASX 300 Most Undervalued screen. Change any assumption yourself in the full interactive tool.

Frequently asked questions

Is NAB.AX undervalued?

The Base-case DDM estimates intrinsic value at $28.08 vs a current price of $42.85 — a -34.5% margin, so the Base case reads overvalued. This is a mechanical output, not advice.