Abu Dhabi Islamic Bank PJSC Valuation

Q: What is the Fair Price of ADIB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ADIB (AED12.78) is trading above our estimate of [[fair value]] (AED9.69)

Is ADIB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ADIB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADIB (AED12.78) is trading above our estimate of fair value (AED9.69)

Significantly Below Fair Value: ADIB is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADIB?

Key metric: As ADIB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADIB. This is calculated by dividing ADIB's market cap by their current earnings.
What is ADIB's PE Ratio?
PE Ratio	8.5x
Earnings	د.إ5.45b
Market Cap	د.إ46.42b

ADIB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

How does ADIB's PE Ratio compare to its peers?

The above table shows the PE ratio for ADIB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	7.3x
DIB Dubai Islamic Bank P.J.S.C	6.8x	-3.4%	د.إ47.2b
MASQ Mashreqbank PSC	5.4x	-7.8%	د.إ46.1b
EIB Emirates Islamic Bank PJSC	9.1x	n/a	د.إ27.2b
ADCB Abu Dhabi Commercial Bank PJSC	7.9x	2.5%	د.إ69.2b
ADIB Abu Dhabi Islamic Bank PJSC	8.5x	4.6%	د.إ46.4b

Price-To-Earnings vs Peers: ADIB is expensive based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (7.3x).

Price to Earnings Ratio vs Industry

How does ADIB's PE Ratio compare vs other companies in the Asian Banks Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ADIB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is ADIB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADIB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.5x
Fair PE Ratio	7.7x

Price-To-Earnings vs Fair Ratio: ADIB is expensive based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ADIB forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	د.إ12.78	د.إ15.13 +18.4%	10.8%	د.إ17.60	د.إ11.40	n/a	12
Nov ’25	د.إ12.70	د.إ14.88 +17.2%	11.5%	د.إ17.60	د.إ11.40	n/a	12
Oct ’25	د.إ12.82	د.إ14.52 +13.3%	12.0%	د.إ17.60	د.إ11.40	n/a	13
Sep ’25	د.إ12.62	د.إ14.41 +14.2%	11.9%	د.إ17.60	د.إ11.40	n/a	14
Aug ’25	د.إ12.38	د.إ14.08 +13.7%	10.0%	د.إ16.70	د.إ11.40	n/a	14
Jul ’25	د.إ11.72	د.إ13.72 +17.1%	10.0%	د.إ15.80	د.إ11.40	n/a	14
Jun ’25	د.إ11.22	د.إ13.72 +22.3%	10.0%	د.إ15.80	د.إ11.40	n/a	14
May ’25	د.إ11.32	د.إ13.32 +17.6%	10.7%	د.إ16.10	د.إ11.00	n/a	12
Apr ’25	د.إ11.18	د.إ12.88 +15.2%	8.1%	د.إ14.60	د.إ11.00	n/a	11
Mar ’25	د.إ11.28	د.إ12.77 +13.2%	9.1%	د.إ14.60	د.إ10.80	n/a	11
Feb ’25	د.إ11.22	د.إ12.65 +12.7%	9.2%	د.إ14.60	د.إ10.80	n/a	11
Jan ’25	د.إ10.12	د.إ12.36 +22.1%	8.1%	د.إ13.60	د.إ10.80	n/a	9
Dec ’24	د.إ10.28	د.إ12.48 +21.4%	8.4%	د.إ13.60	د.إ10.80	n/a	9
Nov ’24	د.إ10.62	د.إ12.54 +18.1%	8.7%	د.إ13.60	د.إ10.80	د.إ12.70	8
Oct ’24	د.إ11.26	د.إ12.48 +10.8%	7.5%	د.إ13.60	د.إ10.80	د.إ12.82	9
Sep ’24	د.إ10.50	د.إ12.40 +18.1%	7.7%	د.إ13.60	د.إ10.80	د.إ12.62	9
Aug ’24	د.إ11.12	د.إ12.06 +8.4%	6.2%	د.إ13.30	د.إ10.80	د.إ12.38	8
Jul ’24	د.إ10.64	د.إ11.63 +9.3%	9.0%	د.إ13.30	د.إ9.60	د.إ11.72	9
Jun ’24	د.إ10.18	د.إ11.63 +14.3%	9.0%	د.إ13.30	د.إ9.60	د.إ11.22	9
May ’24	د.إ11.24	د.إ11.57 +2.9%	8.5%	د.إ13.10	د.إ9.60	د.إ11.32	9
Apr ’24	د.إ9.98	د.إ11.40 +14.2%	9.1%	د.إ13.00	د.إ9.60	د.إ11.18	7
Mar ’24	د.إ10.60	د.إ11.30 +6.6%	8.7%	د.إ13.00	د.إ9.60	د.إ11.28	7
Feb ’24	د.إ9.44	د.إ11.07 +17.3%	7.6%	د.إ12.70	د.إ9.60	د.إ11.22	7
Jan ’24	د.إ9.11	د.إ11.03 +21.1%	8.2%	د.إ12.70	د.إ9.60	د.إ10.12	6
Dec ’23	د.إ9.60	د.إ11.18 +16.5%	3.8%	د.إ12.00	د.إ10.80	د.إ10.28	5
Nov ’23	د.إ9.40	د.إ10.64 +13.2%	5.1%	د.إ11.30	د.إ9.70	د.إ10.62	5

Analyst Forecast: Target price is less than 20% higher than the current share price.