Analysing the Upside Potential of NAB: Valuing the $31.3 National Australia Bank Ltd Stock

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Are National Australia Bank Ltd (ASX: NAB) shares worth investing in? Currently, the share price is trading near $31.3 – so is now the right time to buy?

National Australia Bank Ltd is a significant business lender, boasting one of Australia’s largest market capitalisations, the highest profits, and numerous customers. But that’s not all – its presence within residential lending (mortgages, personal loans etc.) can also be felt by 

APRA banking statistics. On top of this, it owns Ubank – an online-only bank that offers cost-effective solutions for individuals too.

Suppose you’re a long-term investor aiming to invest in outstanding companies and keep them for five, ten or even 20 years. In that case, the Rask team is confident that an excellent workplace environment can lead to better retention of top-notch personnel. Ultimately, this will help ensure the company’s financial success over time.

To gain insight into companies like National Australia Bank Ltd or Westpac Banking Corp, Australian investors can use an HR/jobs website such as Seek. This platform provides data on the HR of various businesses and contains employee reviews. 

The most recent evaluation indicated that NAB has an overall workplace culture rating of 3.8 out of 5, surpassing the ASX banking sector’s average rating of 3.71.

Regarding ASX bank stocks like NAB, debt and attractive profit margins are essential for success. Banks acquire money from term deposit holders and wholesale debt investors, then lend it to homeowners, business entities, and investors. 

The disparity between what a lender pays savers compared to the amount made off mortgage holders (for instance) is known as the net interest margin–or NIM. Keep this in mind: when discussing NIMs, higher numbers indicate better results.

Analysts pay special attention to the NIM because 80% of National Australia Bank Ltd’s total income comes from lending activities. In other words, it was their primary source of revenue for last year.

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