At A$219.394 per share, Macquarie Group (ASX: MQG) appears reasonably valued based on its current operating performance. Macquarie reported FY26 net profit of A$4.85 billion, an increase of 30% from FY25, while net operating income increased by 13% to A$19.48 billion. Earnings were A$12.77 per share, giving a P/E ratio of approximately 17.2 times at the assessed price.
Macquarie’s FY26 result was supported by stronger contributions from each of its four main businesses. Macquarie Asset Management contributed A$2.60 billion, Banking and Financial Services contributed A$1.61 billion, Commodities and Global Markets contributed A$4.22 billion and Macquarie Capital contributed A$1.49 billion. Around 68% of net operating income was generated outside Australia, reducing Macquarie’s dependence on Australian housing and domestic banking conditions.
Return on equity increased from 11.2% to 14%, while assets under management reached A$722.1 billion, an increase of 8% from March 2025. These figures provide context for the assessed valuation, as Macquarie combines relatively steady income from asset management and banking with more variable earnings from commodities, financial markets, advisory work and asset sales.
Macquarie paid total FY26 dividends of A$7.00 per share, consisting of an A$2.80 interim dividend and an A$4.20 final dividend. This represents a cash yield of approximately 3.2% at the assessed price, with both dividends 35% franked. The dividend represented around 55% of earnings, within Macquarie’s target payout range of 50% to 70%.
Importantly, this assessment is based primarily on Macquarie’s existing businesses and FY26 earnings. It does not assign significant value to stronger future investment markets, additional asset sales, further growth in private credit, increased assets under management or expansion of the banking business. These may provide additional upside over time, but remain subject to financial-market conditions, commodity volatility, investment performance, credit losses, regulation and the timing of asset sales.
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The user Jamesiskindacool has a position in ASX:MQG. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
