Virgin Money UK Valuation

Is 42YA 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 42YA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 42YA (€2.52) is trading below our estimate of fair value (€6.4)

Significantly Below Fair Value: 42YA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 42YA?

Other financial metrics that can be useful for relative valuation.

42YA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does 42YA's PE Ratio compare to its peers?

The above table shows the PE ratio for 42YA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.1x
CBK Commerzbank
7.4x6.5%€16.3b
PCZ ProCredit Holding
4.8x10.1%€566.6m
MBK Merkur PrivatBank KgaA
9x4.0%€119.8m
BBVAC1 Banco BBVA Perú
7xn/aS/12.1b
42YA Virgin Money UK
11.1x11.2%€2.8b

Price-To-Earnings vs Peers: 42YA is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

How does 42YA's PE Ratio compare vs other companies in the European Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 42YA is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the European Banks industry average (7.8x).


Price to Earnings Ratio vs Fair Ratio

What is 42YA'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.

42YA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: 42YA is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


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 42YA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.52
€2.54
+1.0%
4.2%€2.61€2.36n/a11
Jun ’25€2.49
€2.52
+1.4%
4.2%€2.59€2.34n/a11
May ’25€2.49
€2.52
+1.2%
6.3%€2.93€2.28n/a15
Apr ’25€2.48
€2.46
-0.5%
5.4%€2.58€2.22n/a16
Mar ’25€1.74
€2.30
+32.0%
12.0%€2.92€1.75n/a20
Feb ’25€1.77
€2.31
+30.3%
11.5%€2.88€1.76n/a20
Jan ’25€1.86
€2.27
+22.2%
11.2%€2.83€1.79n/a20
Dec ’24€1.60
€2.34
+46.5%
14.8%€3.27€1.81n/a20
Nov ’24€1.62
€2.54
+56.7%
17.6%€3.53€1.79n/a19
Oct ’24€1.85
€2.49
+35.1%
16.8%€3.51€1.78n/a20
Sep ’24€1.82
€2.51
+38.0%
16.0%€3.55€1.80n/a20
Aug ’24€1.98
€2.50
+25.8%
16.6%€3.55€1.74n/a20
Jul ’24€1.82
€2.49
+36.7%
16.2%€3.53€1.74n/a20
Jun ’24€1.63
€2.50
+53.4%
15.3%€3.55€1.92€2.4920
May ’24€1.66
€2.51
+51.1%
15.9%€3.63€1.87€2.4920
Apr ’24€1.58
€2.56
+61.9%
15.3%€3.64€1.88€2.4820
Mar ’24€1.97
€2.55
+29.3%
15.0%€3.63€1.87€1.7421
Feb ’24€2.10
€2.52
+20.2%
16.3%€3.60€1.86€1.7721
Jan ’24€2.14
€2.55
+18.9%
18.3%€3.64€1.71€1.8621
Dec ’23€1.93
€2.57
+33.1%
19.5%€3.72€1.74€1.6021
Nov ’23€1.51
€2.50
+65.8%
19.5%€3.41€1.83€1.6222
Oct ’23€1.31
€2.64
+101.7%
17.4%€3.42€1.82€1.8522
Sep ’23€1.65
€2.79
+69.1%
17.3%€3.56€1.90€1.8220
Aug ’23€1.72
€2.79
+62.4%
17.6%€4.11€1.91€1.9821
Jul ’23€1.44
€2.70
+87.4%
18.1%€4.00€1.86€1.8221
Jun ’23€1.67
€2.78
+66.5%
18.0%€3.87€1.88€1.6321

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


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.