7.69 GBP (+29.2%)
4 analysts
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Investec is a specialized bank and asset manager offering private banking, wealth management and investment services, with main operations in South Africa and the United Kingdom.
Listed on London Stock Exchange · Symbol INVP.L · LON: INVP · Currency GBP
Key points
from its scores- ✓High-quality business9.3
- ✓Attractive dividend9.0
- ✓Attractive valuation8.0
- ✕Fragile balance sheet4.8
- !Risks to watch5.8
AI analysis
bottom line, main risk, context and newsHold or buy on dips if jurisdictional risk is accepted; valuation and dividend partially compensate for the South Africa risk premium.
Investec shows solid fundamentals: operating margin of 43.81%, ROE of 12.37% and P/E of 7.93, with a net dividend yield of 6.23%. The main drag is the jurisdictional risk of its South African domicile, which penalizes its attractiveness despite healthy financial metrics.
The main risk is jurisdictional exposure to South Africa, with weak institutional governance and possible state intervention that could affect the distribution of profits to minority shareholders.
Context and risks
Investec is domiciled in South Africa, a country with weak institutional governance and limited minority shareholder protection. Although it mainly operates in developed markets (UK and Europe), its South African parent exposes investors to jurisdictional and state control risk, justifying a significant penalty on the base risk.
Is Investec stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 46% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 7.9 | 13.7 | −42% |
| Price / book | 0.9 | 1.9 | −50% |
| Price / sales | 1.8 | 3.5 | −49% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.0 out of 10 (median for Financial Services: 5.2).
Average analyst target: 7.69 GBP, +29.2% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.8 (sector 5.5), Growth 6.4 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 7.9
- Forward P/E
- 6.1
- Price / book
- 0.9
- Price / sales
- 1.8
- PEG
- 0.67
- Market cap
- 3.7B GBP
- Enterprise value
- −1.9B GBP
Profitability
- ROE
- 12.4%
- ROA
- 1.2%
- ROIC (approx.)
- 9.2%
- Gross margin
- 0.0%
- Operating margin
- 43.8%
- Net margin
- 34.1%
Solvency
- Total debt
- 6.1B GBP
- Net debt
- −7.0B GBP
- Cash
- 13.2B GBP
Growth
- Revenue growth
- +9.4%
- Earnings growth
- +9.2%
- EPS (TTM)
- 0.75 GBP
- EPS (forward)
- 0.97 GBP
Dividend
- Dividend yield
- 6.6%
- Payout
- 50.0%
Risk and market
- Beta
- 0.44
- Analyst consensus
- Strong buy (4)
- Target price
- 7.69 GBP
Recent news
All INVP.L news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Investec
Is Investec stock cheap or expensive?
On P/E and Price / book, it trades 46% below the Financial Services median on average. Valuation score: 8.0 out of 10 (median for Financial Services: 5.2). Average analyst target: 7.69 GBP, +29.2% versus the price. This is not investment advice.
What score does Investec get on MeridIAn Screener?
It scores 7.1 out of 10, rank 166 of 2,130 (better than 91% of the companies analysed). Its strongest category is Quality / Moat (9.3) and its weakest, Financial health (4.8). Analysis of 08/10/2026.
What is Investec's P/E ratio?
Its P/E is 7.9: the share price equals 7.9 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 6.1.
How much is Investec worth on the stock market?
Its market capitalisation is 3.7B GBP.
Does Investec pay a dividend?
Yes: its dividend yield is 6.55% and it pays out 50% of its earnings.
How has Investec stock performed over the last year?
It has risen 5.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 6.90 GBP. Past performance does not guarantee future results.
What do analysts think of Investec?
4 analysts cover it; their average recommendation is “Strong buy” and their average target is 7.69 GBP (+29.2% versus the price). It is an estimate, not market data.