Société Générale Société anonyme

BRSE:GLE Stock Report

Market Cap: CHF 16.6b

Société Générale Société anonyme Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: GLE (CHF26.68) is trading below our estimate of fair value (CHF114.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GLE. This is calculated by dividing GLE's market cap by their current earnings.
What is GLE's PE Ratio?
PE Ratio9.9x
Earnings€1.78b
Market Cap€17.63b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GLE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.8x
LLBN Liechtensteinische Landesbank
12.7xn/aCHF 2.1b
BCVN Banque Cantonale Vaudoise
16.6x0.5%CHF 7.5b
GRKP Graubündner Kantonalbank
18.8x-2.5%CHF 4.4b
LUKN Luzerner Kantonalbank
11xn/aCHF 3.1b
GLE Société Générale Société anonyme
9.9x21.1%CHF 17.6b

Price-To-Earnings vs Peers: GLE is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (14.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GLE 9.9xIndustry Avg. 7.4xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GLE is expensive based on its Price-To-Earnings Ratio (9.9x) compared to the European Banks industry average (7.5x).

Price to Earnings Ratio vs Fair Ratio

What is GLE'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.

GLE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ratio17.1x

Price-To-Earnings vs Fair Ratio: GLE is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).

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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