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MCB: Forward Earnings Multiple Will Drive Bullish Price Outlook

Improved Margins And Lower Rates Will Support Future Financial Performance

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MCB
AnalystConsensusTarget
Not Invested
Published 13 Mar 2025

Update shared on 11 Dec 2025

Fair value Increased 8.43%
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AnalystConsensusTarget's Fair Value
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1Y
35.2%
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-0.7%

Analysts have raised their price target on MCB Bank from PKR 415 to PKR 450, citing slightly lower perceived risk, resilient margins despite modestly negative revenue growth, and a willingness to assign a higher forward P E multiple.

What's in the News

  • Board meeting scheduled for December 11, 2025, to approve MCB Bank's strategic business plan for 2026 to 2028, including the annual budget for 2026 and other related matters (Key Developments).
  • Board meeting set for October 22, 2025, to review quarterly financial results for the period ended September 30, 2025, and to consider the declaration of any entitlement (Key Developments).

Valuation Changes

  • Fair Value: Raised from PKR 415 to PKR 450, reflecting a moderate upward revision in the target price.
  • Discount Rate: Edged down slightly from 30.59 percent to 30.44 percent, indicating a marginal reduction in perceived risk.
  • Revenue Growth: Maintained at approximately negative 5.18 percent, with no meaningful change in the long term growth assumption.
  • Net Profit Margin: Held broadly stable at around 38.87 percent, with only an immaterial numerical adjustment.
  • Future P/E: Increased from 16.31x to 17.62x, signaling a modest rerating in the bank's forward valuation multiple.

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Disclaimer

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