How to buy AFIC (AFI) shares

Learn how to easily invest in AFIC shares.

Australian Foundation Investment Company Limited
AU: AFI - AUD
ASSET MANAGEMENT
A$8.48
+ A$0.08 ( + 0.95%)

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

AFIC, or the Australian Foundation Investment Company, is one of the oldest investment managers in Australia with a nearly 100-year track record. AFIC has investments in some of the biggest equities in Australia, including BHP, Woolworths, Macquarie and Rio Tinto.

How to buy shares in AFIC

  1. Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
  3. Search for AFIC. Find the share by name or ticker symbol: AFI. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until AFIC reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  6. Check in on your investment. Congratulations, you own a part of AFIC. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

AFIC stock price (ASX:AFI)

Use our graph to track the performance of AFI stocks over time.

AFIC shares at a glance

Information last updated 2021-09-24.
52-week range$6.25 - $8.75
50-day moving average $8.4386
200-day moving average $7.8349
Target price$6.01
PE ratio 43.5233
Dividend yield $0.24 (2.84%)
Earnings per share (TTM) $0.193

Compare share trading platforms

The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
Name Product Standard brokerage fee Inactivity fee Markets
IG Share Trading
AUD $8 or 0.1%
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
AUD $5
No
ASX shares, US shares
Australia’s lowest-cost broker for ASX shares and ETFs.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
ThinkMarkets Share Trading
AUD $8
No
ASX shares
Limited-time offer: Get 10 free ASX trades ($0 brokerage) when you open a share trading account with ThinkMarkets(T&Cs apply).$8 flat fee brokerage for CHESS Sponsored ASX stocks (HIN ownership), plus free live stock price data on an easy to use mobile app.
Saxo Capital Markets (Classic account)
AUD $5
No
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
HSBC Online Share Trading
AUD $19.95
No
ASX shares, mFunds, ETFs, Bonds
Limited time offer: Get up to $100 in brokerage rebates on your first 5 trades when you sign up to a HSBC Online Share Trading account (T&Cs apply). Make trades online with brokerage fees starting from just $19.95 with an HSBC Online Share Trading account. Plus gain access to complimentary expert research, trading ideas and tools.
Bell Direct Share Trading
AUD $15
No
ASX shares, mFunds, ETFs
Invest in Australian shares, options and managed funds from the one account with no inactivity fee.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
loading

Compare up to 4 providers

Is it a good time to buy AFIC stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

AFIC price performance over time

Historical closes compared with the last close of A$8.4

1 week (2021-09-20) 0.12%
1 month (2021-08-27) 8.4
3 months (2021-06-25) 8.95%
6 months (2021-03-26) 13.21%
1 year (2020-09-25) 33.33%
2 years (2019-09-27) 31.25%
3 years (2018-09-27) 37.03%
5 years (2016-09-27) 48.41%

Is AFIC under- or over-valued?

Valuing AFIC stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of AFIC's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

AFIC's P/E ratio

AFIC's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 44x. In other words, AFIC shares trade at around 44x recent earnings.

That's relatively high compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

AFIC financials

Revenue TTM $262.8 million
Operating margin TTM 94.1%
Gross profit TTM $262.8 million
Return on assets TTM 1.89%
Return on equity TTM 3.41%
Profit margin 89.28%
Book value 6.191
Market capitalisation $10.3 billion

TTM: trailing 12 months

AFIC share dividends

1%

Dividend payout ratio: 1.26% of net profits

Recently AFIC has paid out, on average, around 1.26% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.86% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), AFIC shareholders could enjoy a 2.86% return on their shares, in the form of dividend payments. In AFIC's case, that would currently equate to about A$0.24 per share.

While AFIC's payout ratio might seem low, this can signify that AFIC is investing more in its future growth.

The latest dividend was paid out to all shareholders who bought their shares by 10 August 2021 (the "ex-dividend date").

AFIC share price volatility

Over the last 12 months, AFIC's shares have ranged in value from as little as $6.25 up to $8.75. A popular way to gauge a stock's volatility is its "beta".

AFI.AU volatility(beta: 0.53)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while AFIC's is 0.5348. This would suggest that AFIC's shares are less volatile than average (for this exchange).

AFIC overview

Australian Foundation Investment Company Limited is a publicly owned investment manager. The firm invests in the public equity markets of Australia and New Zealand. It invests in value stocks of companies. It benchmarks the performance of its portfolio against S&P/ASX 200 Accumulation Index. It invests in companies across diversified industries. The firm employs fundamental analysis with a focus on bottom-up research to make its investments. The firm conducts in-house research to make its investments. Australian Foundation Investment Company Limited was founded in 1928 and is based in Melbourne, Australia.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site