Banco Santander, S.A.

XTRA:BSD2 Stock Report

Market Cap: €150.2b

Banco Santander Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: BSD2 (€10.41) is trading below our estimate of future cash flow value (€19.44)

Significantly Below Future Cash Flow Value: BSD2 is trading below future cash flow 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 Ratio12x
Earnings€12.47b
Market Cap€150.18b

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 Average15.2x
CBK Commerzbank
16.4x14.70%€39.2b
PCZ ProCredit Holding
5.7x18.88%€475.9m
CBA Commonwealth Bank of Australia
26.6x2.56%AU$277.0b
TD Toronto-Dominion Bank
12.2x-5.82%CA$258.2b
BSD2 Banco Santander
12x14.82%€150.2b

Price-To-Earnings vs Peers: BSD2 is good value based on its Price-To-Earnings Ratio (12x) compared to the peer average (15.2x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

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 12.0xIndustry Avg. 11.4xNo. of Companies41PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BSD2 is expensive based on its Price-To-Earnings Ratio (12x) compared to the European Banks industry average (11.4x).

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 Ratio12x
Fair PE Ratio14.8x

Price-To-Earnings vs Fair Ratio: BSD2 is good value based on its Price-To-Earnings Ratio (12x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).

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€10.41
€12.12
+16.36%
10.88%€13.80€7.30n/a20
May ’27€10.42
€12.01
+15.17%
10.61%€13.25€7.30n/a20
Apr ’27€9.98
€11.95
+19.69%
10.62%€13.25€7.30n/a20
Mar ’27€10.76
€11.85
+10.11%
10.80%€13.25€7.30n/a20
Feb ’27€10.79
€10.52
-2.51%
14.79%€12.40€7.00n/a20
Jan ’27€10.10
€9.53
-5.65%
12.74%€11.10€7.00n/a20
Dec ’26€9.29
€9.46
+1.81%
12.21%€11.00€7.00n/a20
Nov ’26€8.83
€9.19
+4.13%
11.71%€10.80€7.00n/a20
Oct ’26€8.82
€8.65
-1.98%
10.19%€10.40€7.00n/a19
Sep ’26€8.18
€8.00
-2.26%
10.86%€9.50€5.80n/a20
Aug ’26€7.20
€7.71
+7.01%
8.69%€8.70€5.80n/a20
Jul ’26€6.96
€7.36
+5.76%
8.51%€8.70€5.80n/a20
Jun ’26€7.03
€7.07
+0.50%
10.64%€8.30€4.70n/a20
May ’26€6.18
€6.73
+8.87%
10.42%€7.50€4.70€10.4221
Apr ’26€6.33
€6.61
+4.50%
10.95%€7.50€4.70€9.9821
Mar ’26€6.22
€6.22
-0.047%
8.96%€7.10€4.70€10.7621
Feb ’26€4.97
€5.74
+15.41%
7.93%€6.65€4.70€10.7921
Jan ’26€4.39
€5.73
+30.44%
7.05%€6.32€4.70€10.1021
Dec ’25€4.37
€5.73
+31.02%
7.39%€6.32€4.70€9.2921
Nov ’25€4.60
€5.72
+24.39%
7.34%€6.32€4.70€8.8321
Oct ’25€4.37
€5.61
+28.31%
7.56%€6.30€4.70€8.8222
Sep ’25€4.50
€5.61
+24.62%
7.52%€6.30€4.70€8.1822
Aug ’25€4.26
€5.60
+31.47%
7.35%€6.30€4.70€7.2022
Jul ’25€4.44
€5.55
+25.07%
8.55%€6.30€4.30€6.9622
Jun ’25€4.82
€5.49
+13.96%
8.75%€6.30€4.30€7.0322
May ’25€4.60
€5.28
+14.88%
7.64%€5.95€4.30€6.1822
€12.1
Fair Value
13.9% undervalued intrinsic discount
20
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/24 14:42
End of Day Share Price 2026/05/22 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Banco Santander, S.A. is covered by 38 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Javier Esteban LarioBanco de Sabadell. S.A.
Cecilia Romero ReyesBarclays
Thomas Andrew RaynerBarclays