Medibank Private Limited (MPL.AX)

DDM Valuation · Financial Services · Insurance - Specialty

Valuation as at 2026-08-14 · see also the ASX 300 Most Undervalued screen

About Medibank Private Limited

Medibank Private Limited provides private health insurance in Australia. The company operates in two segments, Health Insurance and Medibank Health. The Health Insurance segment provides private health insurance products, including hospital cover that offers members with health cover for hospital treatments; and ancillary cover, which provides members with health cover for healthcare services comprising dental, optical, and physiotherapy, as well as offers health insurance products to overseas visitors and students.

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

Medibank Private Limited MPL.AX

Financial Services · Insurance - Specialty

Price
$5.08
Market Cap
$13.99B
Dividend Yield
3.3%
Beta
0.50
P/E (TTM)
29.9x
52-Week Range
$4.06–$5.31

Medibank Private Limited'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 as at 2026-08-14

Share price · last 2 years

$5.08 +32% vs 2024-08
ASX 200 $3.86$4.00$5.05$4.65$4.69$5.08 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per year

$0.18 +27% vs FY22
$0.14$0.19$0.18$0.18FY22FY23FY24FY25

Return on equity Per year

21.4% +6% vs FY22
20.2%24.5%21.4%21.4%FY22FY23FY24FY25

Dividend per share Per year

$0.17 +34% vs FY22
$0.13$0.14$0.16$0.17FY22FY23FY24FY25

Value investing scale · Buffett · Dalio · Graham

Strong Fit
13 / 17 combined score

See the full Buffett, Dalio & Graham breakdown for MPL.AX →

🏦 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
5.96x
ROE
20.0%
Div Yield
3.3%

Intrinsic value estimate · 5-year forecast

BEAR
$2.48
vs current $5.08
-51.2% ❌ Overvalued
BASE
$2.94
vs current $5.08
-42.1% ❌ Overvalued
BULL
$3.62
vs current $5.08
-28.8% ❌ Overvalued

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
0.50
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)
$0.17
Annual, per share
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
Dividend growth0.0%0.0%0.0%
Terminal growth2.5%2.5%2.5%
Cost of equity8.80%7.80%6.80%

Cost of Equity (CAPM) = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.50 × 6.00% = 7.80%

These numbers come from running Medibank Private Limited's dividends through the mechanical DDM formula and assumptions above — not from any view on the news, management, or MPL.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 MPL.AX →

More ASX stocks we've valued

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

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the ASX 300 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Medibank Private Limited (MPL.AX) undervalued?

The Base-case DDM estimates intrinsic value at $2.94 vs a price of $5.08 on 2026-08-14 — a -42.1% margin, so the Base case reads overvalued. This is a mechanical output, not advice.