National Bank of Ras Al-Khaimah (P.S.C.) Valuation

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

RAKBANK (AED5.75) is trading above our estimate of [[fair value]] (AED0.21)

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

Valuation Score

4/6

Valuation Score 4/6

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 RAKBANK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RAKBANK (AED5.75) is trading above our estimate of fair value (AED0.21)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RAKBANK. This is calculated by dividing RAKBANK's market cap by their current earnings.
What is RAKBANK's PE Ratio?
PE Ratio	5.5x
Earnings	د.إ2.12b
Market Cap	د.إ11.57b

RAKBANK 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	-2.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RAKBANK 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	8.5x
SIB Sharjah Islamic Bank PJSC	7.4x	-16.0%	د.إ7.3b
CBD Commercial Bank of Dubai PSC	7.7x	2.9%	د.إ21.8b
NBF National Bank of Fujairah PJSC	10.2x	n/a	د.إ8.0b
NBQ National Bank of Umm Al-Qaiwain (PSC)	8.6x	n/a	د.إ4.5b
RAKBANK National Bank of Ras Al-Khaimah (P.S.C.)	5.5x	-1.9%	د.إ11.6b

Price-To-Earnings vs Peers: RAKBANK is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does RAKBANK'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: RAKBANK is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Asian Banks industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is RAKBANK'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.

RAKBANK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.5x
Fair PE Ratio	6.5x

Price-To-Earnings vs Fair Ratio: RAKBANK is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

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 RAKBANK 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.إ5.75	د.إ7.18 +24.8%	12.1%	د.إ8.50	د.إ6.30	n/a	4
Nov ’25	د.إ5.50	د.إ7.15 +30.0%	12.1%	د.إ8.50	د.إ6.30	n/a	4
Oct ’25	د.إ5.30	د.إ7.15 +34.9%	12.1%	د.إ8.50	د.إ6.30	n/a	4
Sep ’25	د.إ5.35	د.إ7.18 +34.1%	12.1%	د.إ8.50	د.إ6.30	n/a	4
Aug ’25	د.إ5.38	د.إ7.01 +30.3%	10.4%	د.إ8.00	د.إ6.15	n/a	4
Jul ’25	د.إ5.18	د.إ7.04 +35.9%	10.9%	د.إ8.10	د.إ6.15	n/a	4
Jun ’25	د.إ5.20	د.إ6.59 +26.7%	19.6%	د.إ8.10	د.إ4.70	n/a	4
May ’25	د.إ5.40	د.إ6.08 +12.7%	18.1%	د.إ7.40	د.إ4.70	n/a	3
Apr ’25	د.إ5.15	د.إ6.08 +18.1%	18.1%	د.إ7.40	د.إ4.70	n/a	3
Mar ’25	د.إ5.12	د.إ6.08 +18.8%	18.1%	د.إ7.40	د.إ4.70	n/a	3
Feb ’25	د.إ5.25	د.إ6.08 +15.9%	18.1%	د.إ7.40	د.إ4.70	n/a	3
Jan ’25	د.إ5.30	د.إ6.25 +17.9%	14.4%	د.إ7.40	د.إ5.20	n/a	3
Dec ’24	د.إ5.35	د.إ6.25 +16.8%	14.4%	د.إ7.40	د.إ5.20	n/a	3
Nov ’24	د.إ5.50	د.إ6.22 +13.0%	13.8%	د.إ7.30	د.إ5.20	د.إ5.50	3
Oct ’24	د.إ5.78	د.إ6.48 +12.2%	6.7%	د.إ7.10	د.إ6.15	د.إ5.30	3
Sep ’24	د.إ5.90	د.إ6.62 +12.1%	9.4%	د.إ7.50	د.إ6.15	د.إ5.35	3
Aug ’24	د.إ6.00	د.إ6.62 +10.3%	9.4%	د.إ7.50	د.إ6.15	د.إ5.38	3
Jul ’24	د.إ4.50	د.إ5.55 +23.4%	11.9%	د.إ6.59	د.إ4.75	د.إ5.18	4
Jun ’24	د.إ4.25	د.إ5.28 +24.3%	5.8%	د.إ5.50	د.إ4.75	د.إ5.20	4
May ’24	د.إ4.42	د.إ5.28 +19.6%	5.8%	د.إ5.50	د.إ4.75	د.إ5.40	4
Apr ’24	د.إ4.29	د.إ5.18 +20.7%	10.1%	د.إ5.92	د.إ4.75	د.إ5.15	3
Mar ’24	د.إ4.16	د.إ5.18 +24.6%	10.1%	د.إ5.92	د.إ4.75	د.إ5.12	3
Feb ’24	د.إ4.00	د.إ5.18 +29.5%	10.1%	د.إ5.92	د.إ4.75	د.إ5.25	3
Jan ’24	د.إ3.92	د.إ5.18 +32.3%	10.1%	د.إ5.92	د.إ4.75	د.إ5.30	3
Dec ’23	د.إ3.92	د.إ5.06 +29.2%	7.0%	د.إ5.56	د.إ4.75	د.إ5.35	3
Nov ’23	د.إ3.93	د.إ5.03 +28.2%	7.6%	د.إ5.56	د.إ4.67	د.إ5.50	3

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.