Mashreqbank PSC Valuation

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

MASQ (AED231) is trading above our estimate of [[fair value]] (AED107.85)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: MASQ (AED231) is trading above our estimate of fair value (AED107.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MASQ. This is calculated by dividing MASQ's market cap by their current earnings.
What is MASQ's PE Ratio?
PE Ratio	5.4x
Earnings	د.إ8.60b
Market Cap	د.إ46.34b

MASQ 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	-0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MASQ 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	8.1x
ADIB Abu Dhabi Islamic Bank PJSC	8.5x	4.4%	د.إ46.6b
DIB Dubai Islamic Bank P.J.S.C	6.8x	-3.5%	د.إ47.6b
EIB Emirates Islamic Bank PJSC	9.1x	n/a	د.إ27.2b
ADCB Abu Dhabi Commercial Bank PJSC	8.1x	2.5%	د.إ70.6b
MASQ Mashreqbank PSC	5.4x	-7.8%	د.إ46.3b

Price-To-Earnings vs Peers: MASQ is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (8.1x).

Price to Earnings Ratio vs Industry

How does MASQ'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: MASQ is good value based on its Price-To-Earnings Ratio (5.4x) compared to the Asian Banks industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is MASQ'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.

MASQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.4x
Fair PE Ratio	6.6x

Price-To-Earnings vs Fair Ratio: MASQ is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (6.6x).

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 MASQ 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.إ231.00	د.إ239.40 +3.6%	1.8%	د.إ243.80	د.إ235.00	n/a	2
Nov ’25	د.إ240.00	د.إ239.40 -0.2%	1.8%	د.إ243.80	د.إ235.00	n/a	2
Oct ’25	د.إ242.80	د.إ231.40 -4.7%	5.4%	د.إ243.80	د.إ219.00	n/a	2
Sep ’25	د.إ217.00	د.إ231.40 +6.6%	5.4%	د.إ243.80	د.إ219.00	n/a	2
Aug ’25	د.إ219.95	د.إ231.40 +5.2%	5.4%	د.إ243.80	د.إ219.00	n/a	2
Jul ’25	د.إ199.00	د.إ219.40 +10.3%	11.1%	د.إ243.80	د.إ195.00	n/a	2
Jun ’25	د.إ197.00	د.إ219.40 +11.4%	11.1%	د.إ243.80	د.إ195.00	n/a	2
May ’25	د.إ184.00	د.إ219.40 +19.2%	11.1%	د.إ243.80	د.إ195.00	n/a	2
Apr ’25	د.إ173.00	د.إ219.40 +26.8%	11.1%	د.إ243.80	د.إ195.00	n/a	2
Mar ’25	د.إ206.00	د.إ201.55 -2.2%	3.2%	د.إ208.10	د.إ195.00	n/a	2
Feb ’25	د.إ210.00	د.إ194.05 -7.6%	7.2%	د.إ208.10	د.إ180.00	n/a	2
Jan ’25	د.إ152.00	د.إ194.05 +27.7%	7.2%	د.إ208.10	د.إ180.00	n/a	2
Dec ’24	د.إ153.10	د.إ194.05 +26.7%	7.2%	د.إ208.10	د.إ180.00	n/a	2
Nov ’24	د.إ159.00	د.إ183.70 +15.5%	2.0%	د.إ187.40	د.إ180.00	د.إ240.00	2
Oct ’24	د.إ151.00	د.إ172.60 +14.3%	7.3%	د.إ185.20	د.إ160.00	د.إ242.80	2
Sep ’24	د.إ150.00	د.إ172.60 +15.1%	7.3%	د.إ185.20	د.إ160.00	د.إ217.00	2
Aug ’24	د.إ144.00	د.إ167.55 +16.4%	4.5%	د.إ175.10	د.إ160.00	د.إ219.95	2
Jul ’24	n/a	د.إ160.05 0%	9.4%	د.إ175.10	د.إ145.00	د.إ199.00	2
Jun ’24	د.إ125.00	د.إ160.05 +28.0%	9.4%	د.إ175.10	د.إ145.00	د.إ197.00	2
May ’24	د.إ120.00	د.إ153.09 +27.6%	5.3%	د.إ161.18	د.إ145.00	د.إ184.00	2
Apr ’24	د.إ120.00	د.إ139.80 +16.5%	3.7%	د.إ145.00	د.إ134.60	د.إ173.00	2
Mar ’24	د.إ132.00	د.إ139.80 +5.9%	3.7%	د.إ145.00	د.إ134.60	د.إ206.00	2
Feb ’24	د.إ103.00	د.إ119.80 +16.3%	12.4%	د.إ134.60	د.إ105.00	د.إ210.00	2
Jan ’24	n/a	د.إ119.80 0%	12.4%	د.إ134.60	د.إ105.00	د.إ152.00	2
Dec ’23	د.إ97.50	د.إ118.60 +21.6%	11.5%	د.إ132.20	د.إ105.00	د.إ153.10	2
Nov ’23	د.إ103.00	د.إ118.60 +15.1%	11.5%	د.إ132.20	د.إ105.00	د.إ159.00	2

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