Bank of Bahrain and Kuwait B.S.C.

BAX:BBK Stock Report

Market Cap: ب.د893.8m

Bank of Bahrain and Kuwait B.S.C Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: BBK (BHD0.5) is trading below our estimate of fair value (BHD0.68)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BBK. This is calculated by dividing BBK's market cap by their current earnings.
What is BBK's PE Ratio?
PE Ratio12.6x
Earningsب.د71.00m
Market Capب.د893.84m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BBK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.8x
NBB National Bank of Bahrain B.S.C
13.1xn/aب.د1.1b
ABC Arab Banking Corporation (B.S.C.)
4.2xn/aUS$1.0b
SALAM Al Salam Bank B.S.C
10xn/aب.د536.5m
AUB Ahli United Bank B.S.C
23.9xn/aUS$10.9b
BBK Bank of Bahrain and Kuwait B.S.C
12.6xn/aب.د893.8m

Price-To-Earnings vs Peers: BBK is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does BBK's PE Ratio compare vs other companies in the Asian Banks Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BBK 12.6xIndustry Avg. 8.5xNo. of Companies79PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BBK is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the Asian Banks industry average (8.4x).

Price to Earnings Ratio vs Fair Ratio

What is BBK'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.

BBK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BBK'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?

Analyst Forecast: Insufficient data to show price forecast.

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