Banco Bilbao Vizcaya Argentaria, S.A.

WBAG:BBVA Stock Report

Market Cap: €50.7b

Banco Bilbao Vizcaya Argentaria Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: BBVA (€8.93) is trading below our estimate of fair value (€22.07)

Significantly Below Fair Value: BBVA is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BBVA. This is calculated by dividing BBVA's market cap by their current earnings.
What is BBVA's PE Ratio?
PE Ratio5.5x
Earnings€9.34b
Market Cap€50.68b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BBVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.9x
EBS Erste Group Bank
6.7x-2.8%€20.7b
RBI Raiffeisen Bank International
2.7x-6.7%€6.0b
BG BAWAG Group
8.7x5.7%€5.8b
OBS Oberbank
13.8xn/a€5.0b
BBVA Banco Bilbao Vizcaya Argentaria
5.5x-3.1%€51.1b

Price-To-Earnings vs Peers: BBVA is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (7.9x).

Price to Earnings Ratio vs Industry

How does BBVA's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BBVA 5.5xIndustry Avg. 7.2xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BBVA is good value based on its Price-To-Earnings Ratio (5.5x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is BBVA'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.

BBVA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio6.4x

Price-To-Earnings vs Fair Ratio: BBVA is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (6.4x).

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 BBVA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.93
€11.39
+27.6%
9.0%€13.00€9.20n/a17
Nov ’25€9.35
€11.46
+22.6%
9.5%€13.60€9.20n/a17
Oct ’25€9.51
€11.44
+20.3%
9.5%€13.60€9.20n/a18
Sep ’25€9.54
€11.37
+19.2%
9.6%€13.60€9.20n/a18
Aug ’25€9.48
€11.48
+21.1%
10.4%€13.60€9.20n/a18
Jul ’25€9.61
€11.43
+19.0%
10.5%€13.54€9.20n/a18
Jun ’25€9.96
€11.29
+13.3%
10.7%€13.54€9.20n/a19
May ’25€10.57
€11.26
+6.6%
11.1%€13.44€9.20n/a20
Apr ’25€10.97
€10.48
-4.4%
14.0%€13.41€8.30n/a22
Mar ’25€9.25
€9.95
+7.6%
12.9%€13.00€8.00n/a23
Feb ’25€8.67
€9.91
+14.2%
13.1%€13.00€8.00n/a23
Jan ’25€8.21
€9.75
+18.8%
12.8%€13.00€7.80n/a23
Dec ’24€8.56
€9.55
+11.5%
11.2%€11.80€7.80n/a24
Nov ’24€7.46
€9.36
+25.5%
11.6%€11.80€7.10€9.3524
Oct ’24€7.71
€8.93
+15.8%
9.9%€10.50€7.10€9.5124
Sep ’24€7.33
€8.81
+20.1%
9.8%€10.30€7.10€9.5425
Aug ’24€7.23
€8.66
+19.7%
9.5%€10.30€7.10€9.4825
Jul ’24€7.00
€8.48
+21.1%
9.3%€10.00€6.90€9.6124
Jun ’24€6.24
€8.31
+33.3%
12.5%€10.00€6.00€9.9623
May ’24€6.95
€8.12
+16.8%
11.9%€9.80€6.00€10.5722
Apr ’24€6.40
€7.86
+22.8%
11.9%€9.30€6.00€10.9722
Mar ’24€7.23
€7.71
+6.7%
11.2%€9.20€6.00€9.2521
Feb ’24€6.51
€7.22
+11.0%
12.8%€9.00€5.50€8.6721
Jan ’24€5.70
€6.97
+22.2%
10.6%€8.50€5.50€8.2122
Dec ’23€5.58
€6.89
+23.4%
11.4%€8.50€5.50€8.5622
Nov ’23€5.25
€6.77
+29.0%
10.9%€8.00€5.50€7.4621

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

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