Could the Macquarie share price reach $250 this year?

The Macquarie Group Ltd (ASX: MQG) share price has had a mixed 12 months and currently trades at $211.86.

Although it has made a solid recovery from its 52-week low of $160, it is still comfortably short of its 52-week high of $242.90.

That leaves investors asking an obvious question. Could the Macquarie share price rebound and reach $250 this year?

What would $250 imply?

A move to $250 would require an 18% gain from current levels. That would likely depend on a combination of improving earnings momentum and more supportive market conditions.

To assess whether that is realistic, it helps to look at valuation, history, and how Macquarie’s business is currently tracking.

According to CommSec consensus estimates, Macquarie is expected to deliver earnings per share of $10.85 in FY26, rising to $11.79 in FY27. Dividends per share of $7.10 in FY26 and $7.70 in FY27 are also forecast.

At a $250 share price, that would put Macquarie on a price-to-earnings (PE) ratio of around 23 times FY26 earnings and roughly 21 times FY27 earnings.

How does that compare to history?

Looking at Macquarie’s valuation history adds some useful context.

According to CommSec, Macquarie’s average PE ratios over the past five years were approximately 16.25x, 34.1x, 23.1x, 25.4x, and 29.2x.

The lowest multiple, around 16 times earnings, occurred around the COVID period and is arguably an outlier given the extreme uncertainty at the time. Excluding that period, Macquarie has frequently traded in the low-to-mid 20s and, at times, closer to 30 times earnings when conditions were favourable.

Against that backdrop, a valuation of around 21–23 times earnings at a $250 share price would sit toward the lower end of its non-COVID historical range, assuming consensus forecasts are delivered.

How are Macquarie’s results tracking?

Macquarie’s most recent half-year result showed net profit of $1.655 billion, up 3% compared with the prior corresponding period. Performance across its operating divisions was mixed, with strong contributions from Macquarie Asset Management and Macquarie Capital, partly offset by softer conditions in Commodities and Global Markets.

The group’s balance sheet remains conservative, with capital ratios comfortably above regulatory requirements and a significant capital surplus. Macquarie also continues to return capital to shareholders through dividends and its on-market buyback program.

That said, return on equity has moderated compared to recent years. Any sustained re-rating toward $250 would likely require a clear improvement in profitability or confidence that returns are heading higher.

What would need to go right for the Macquarie share price?

For the Macquarie share price to reach $250 this year, I think several things would probably need to fall into place.

Stronger market conditions could lift performance fees in asset management and increase deal activity in Macquarie Capital. Improved volatility and trading opportunities could also support earnings in global markets.

Just as importantly, investors would need confidence that earnings growth is sustainable, rather than cyclical or one-off in nature.

Foolish takeaway

Could the Macquarie share price reach $250 this year? Yes, it is possible.

However, it would likely require an improvement in operating performance, better market conditions, or a shift in investor sentiment toward higher valuations. At that level, the shares would not look cheap, but they also would not appear unreasonable given both consensus earnings forecasts and Macquarie’s longer-term valuation history.

The post Could the Macquarie share price reach $250 this year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.