Banco Santander, S.A.

BUL:BSD2 Stock Report

Market Cap: €69.0b

Banco Santander Valuation

Is BSD2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 BSD2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BSD2 (€4.5) is trading below our estimate of fair value (€8.67)

Significantly Below Fair Value: BSD2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BSD2?

Key metric: As BSD2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BSD2. This is calculated by dividing BSD2's market cap by their current earnings.
What is BSD2's PE Ratio?
PE Ratio5.9x
Earnings€11.75b
Market Cap€68.95b

Price to Earnings Ratio vs Peers

How does BSD2's PE Ratio compare to its peers?

The above table shows the PE ratio for BSD2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.6x
FIB First Investment Bank AD
4.5xn/aлв566.5m
1658 Postal Savings Bank of China
5.2x6.6%HK$542.2b
NAB National Australia Bank
17.4x2.3%AU$121.1b
ISP Intesa Sanpaolo
7.4x-0.3%€65.2b
BSD2 Banco Santander
5.9x-0.3%€69.0b

Price-To-Earnings vs Peers: BSD2 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

How does BSD2's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BSD2 5.9xIndustry Avg. 7.4xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BSD2 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is BSD2'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.

BSD2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BSD2's Price-To-Earnings Fair Ratio for valuation analysis.

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 BSD2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.50
€5.72
+27.0%
7.3%€6.32€4.70n/a21
Nov ’25€4.60
€5.72
+24.2%
7.3%€6.32€4.70n/a21
Oct ’25€4.39
€5.61
+27.7%
7.6%€6.30€4.70n/a22
Sep ’25€4.50
€5.61
+24.7%
7.5%€6.30€4.70n/a22
Aug ’25€4.33
€5.60
+29.4%
7.4%€6.30€4.70n/a22
Jul ’25€4.44
€5.55
+25.2%
8.6%€6.30€4.30n/a22
Jun ’25€4.82
€5.49
+14.0%
8.8%€6.30€4.30n/a22
May ’25€4.60
€5.28
+14.8%
7.6%€5.95€4.30n/a22
Apr ’25€4.54
€5.11
+12.5%
9.1%€5.80€3.80n/a22
Mar ’25€3.85
€5.01
+30.1%
9.2%€5.55€3.80n/a23
Feb ’25€3.77
€4.96
+31.6%
10.0%€5.55€3.60n/a23
Jan ’25€3.79
€4.92
+30.0%
10.3%€5.55€3.60n/a22
Dec ’24€3.83
€4.92
+28.4%
10.3%€5.55€3.60n/a22
Nov ’24€3.51
€4.92
+40.1%
11.2%€5.90€3.60€4.6023
Oct ’24€3.64
€4.84
+33.0%
10.0%€5.70€3.80€4.3923
Sep ’24€3.54
€4.84
+36.8%
9.8%€5.70€3.80€4.5024
Aug ’24€3.63
€4.80
+32.1%
10.2%€5.70€3.80€4.3324
Jul ’24€3.41
€4.63
+35.6%
10.0%€5.54€3.80€4.4421
Jun ’24€3.08
€4.58
+48.7%
12.4%€5.54€3.01€4.8220
May ’24€3.18
€4.64
+45.9%
12.9%€5.60€3.01€4.6020
Apr ’24€3.44
€4.63
+34.9%
12.0%€5.54€3.01€4.5420
Mar ’24€3.71
€4.47
+20.5%
13.2%€5.82€3.01€3.8520
Feb ’24€3.27
€4.05
+23.8%
14.6%€5.20€3.01€3.7720
Jan ’24€2.80
€4.03
+44.1%
15.1%€5.10€3.01€3.7919
Dec ’23€2.85
€3.99
+39.9%
16.0%€5.10€3.01€3.8319
Nov ’23n/a
€3.91
0%
20.2%€5.10€1.65€3.5119

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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