Raiffeisen Bank International (WBAG:RBI): Is the Recent Earnings Decline Reflected in Its Current Valuation?

Raiffeisen Bank International (WBAG:RBI) has just posted its earnings for the nine months ending September 2025, revealing net income of EUR 926 million. This marks a significant decrease from a year ago.

See our latest analysis for Raiffeisen Bank International.

Despite a significant drop in net income, Raiffeisen Bank International’s share price showed renewed momentum, with a striking 71% return so far this year and a one-year total shareholder return of 88%. While the headline numbers raised eyebrows, recent participation at industry events like the World Banking Forum hints at a proactive approach to market challenges. Risk perception is shifting as investors weigh both headwinds and opportunities ahead.

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But with net income sharply down and shares still surging, is Raiffeisen Bank International now trading at a bargain, or is the market already pricing in all the positive expectations for future growth?

Most Popular Narrative: 6.6% Overvalued

Raiffeisen Bank International’s widely followed narrative sees its fair value landing at €30.68, just below its recent close of €32.72. This suggests that, according to the latest narrative, the share price sits slightly above what analysts consider a reasonable estimate in light of future earnings and risks.

Focus on digital transformation and operational efficiency, supported by strong capital ratios, positions the bank well for expansion, acquisitions, and future profitability improvement. However, exposure to geopolitical, regulatory, and litigation risks in core markets threatens profitability, increases cost pressures, and limits Raiffeisen Bank's strategic flexibility and earnings stability.

Read the complete narrative.

Curious what’s driving that premium? The main ingredients behind this valuation are an ambitious profit margin turnaround and a major earnings forecast for the coming years. Want the exact assumptions and the financial logic that build up to the fair value? Explore the full narrative and see what analysts are betting on.

Result: Fair Value of €30.68 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering legal uncertainties in Poland and ongoing exposure to Russian operations could quickly disrupt the expected turnaround and cloud future profitability for Raiffeisen Bank International.

Find out about the key risks to this Raiffeisen Bank International narrative.

Another View: Discounted Cash Flow Model Signals Deep Value

Taking a different approach, our SWS DCF model values Raiffeisen Bank International at €84.61 per share, which is well above its current price. This model presents a case for significant undervaluation, prompting questions about whether the market's caution is overstated or if this is an opportunity in disguise.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Raiffeisen Bank International for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 877 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Raiffeisen Bank International Narrative

If you see things differently or want to dive into the numbers yourself, you can craft your own perspective in just a few minutes. Do it your way

A great starting point for your Raiffeisen Bank International research is our analysis highlighting 2 key rewards and 6 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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