Bank Millennium S.A.

DB:1HN Stock Report

Market Cap: €2.3b

Bank Millennium Valuation

Is 1HN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1HN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1HN (€1.84) is trading below our estimate of fair value (€5.32)

Significantly Below Fair Value: 1HN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1HN?

Key metric: As 1HN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1HN. This is calculated by dividing 1HN's market cap by their current earnings.
What is 1HN's PE Ratio?
PE Ratio15.1x
Earningszł661.80m
Market Capzł9.97b

Price to Earnings Ratio vs Peers

How does 1HN's PE Ratio compare to its peers?

The above table shows the PE ratio for 1HN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.8x
PCZ ProCredit Holding
4.4x10.7%€459.4m
CBK Commerzbank
8x8.8%€17.1b
MBK Merkur PrivatBank KgaA
10.1x8.6%€107.3m
BBAJIO O Banco del Bajío Institución de Banca Múltiple
4.7x-6.3%Mex$52.5b
1HN Bank Millennium
15.1x32.5%€10.0b

Price-To-Earnings vs Peers: 1HN is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (6.8x).

Price to Earnings Ratio vs Industry

How does 1HN's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1HN 15.1xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1HN is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1HN'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.

1HN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: 1HN is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

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 1HN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.84
€2.46
+33.7%
9.5%€2.66€2.01n/a7
Nov ’25€1.85
€2.42
+31.3%
9.2%€2.64€1.99n/a7
Oct ’25€1.96
€2.46
+25.8%
9.2%€2.68€2.02n/a7
Sep ’25€2.06
€2.46
+19.4%
9.7%€2.75€2.01n/a7
Aug ’25€2.06
€2.46
+19.5%
9.6%€2.75€2.02n/a7
Jul ’25€2.13
€2.49
+17.0%
7.4%€2.74€2.21n/a7
Jun ’25€1.95
€2.42
+24.0%
16.1%€3.02€1.68n/a7
May ’25€2.10
€2.42
+15.2%
15.6%€2.99€1.67n/a7
Apr ’25€2.37
€2.33
-1.9%
17.1%€2.99€1.67n/a7
Mar ’25€2.26
€2.11
-6.5%
19.7%€2.62€1.34n/a8
Feb ’25€1.94
€2.07
+6.7%
19.5%€2.61€1.34n/a8
Jan ’25€1.88
€1.93
+2.8%
24.5%€2.60€1.33n/a8
Dec ’24€1.74
€1.88
+7.9%
22.6%€2.61€1.34n/a8
Nov ’24€1.68
€1.45
-13.5%
16.4%€1.94€1.09€1.858
Oct ’24€1.14
€1.41
+24.0%
14.1%€1.70€1.06€1.968
Sep ’24€1.29
€1.43
+10.6%
14.1%€1.77€1.10€2.068
Aug ’24€1.47
€1.44
-2.1%
13.8%€1.79€1.11€2.068
Jul ’24€1.30
€1.27
-2.4%
7.4%€1.40€1.10€2.137
Jun ’24€0.99
€1.19
+20.1%
9.8%€1.37€1.07€1.957
May ’24€1.12
€1.20
+7.5%
13.3%€1.52€1.05€2.107
Apr ’24€0.94
€1.15
+22.9%
11.2%€1.41€1.03€2.377
Mar ’24€0.95
€1.13
+18.4%
11.0%€1.38€1.03€2.267
Feb ’24€1.08
€1.11
+2.8%
13.3%€1.40€0.87€1.948
Jan ’24€0.98
€1.11
+13.8%
13.4%€1.41€0.88€1.888
Dec ’23€0.98
€1.09
+11.5%
16.8%€1.47€0.87€1.748
Nov ’23€0.92
€1.08
+16.9%
18.4%€1.45€0.86€1.687

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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