Southern States Bancshares, Inc.

DB:6U2 Stock Report

Market Cap: €358.5m

Southern States Bancshares Valuation

Is 6U2 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 6U2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6U2 (€35.2) is trading below our estimate of fair value (€136.61)

Significantly Below Fair Value: 6U2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6U2?

Key metric: As 6U2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6U2. This is calculated by dividing 6U2's market cap by their current earnings.
What is 6U2's PE Ratio?
PE Ratio11.4x
EarningsUS$32.57m
Market CapUS$375.62m

Price to Earnings Ratio vs Peers

How does 6U2's PE Ratio compare to its peers?

The above table shows the PE ratio for 6U2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.8x
PCZ ProCredit Holding
4.3x10.7%€451.2m
MBK Merkur PrivatBank KgaA
10.2x8.6%€108.9m
SMMF Summit Financial Group
6.6x1.5%US$377.4m
BICC Banque Internationale pour le Commerce et l'Industrie de la Côte d'Ivoire
10xn/aXOF 215.0b
6U2 Southern States Bancshares
11.4x13.1%€375.6m

Price-To-Earnings vs Peers: 6U2 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (7.8x).

Price to Earnings Ratio vs Industry

How does 6U2's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
6U2 11.4xIndustry Avg. 7.3xNo. of Companies47PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6U2 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is 6U2'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.

6U2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio9.8x

Price-To-Earnings vs Fair Ratio: 6U2 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.8x).

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 6U2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€35.20
€35.51
+0.9%
6.7%€37.88€33.15n/a2
Oct ’25€27.60
€32.07
+16.2%
1.4%€32.52€31.62n/a2
Jun ’24€18.60
€25.68
+38.1%
10.7%€28.43€22.93€24.402
May ’24€20.40
€25.68
+25.9%
10.7%€28.43€22.93€23.402
Apr ’24€20.60
€27.53
+33.6%
6.9%€29.43€25.63€23.802
Mar ’24€27.20
€27.53
+1.2%
6.9%€29.43€25.63€23.202
Feb ’24€26.00
€27.53
+5.9%
6.9%€29.43€25.63€23.602
Jan ’24€26.20
€27.53
+5.1%
6.9%€29.43€25.63€27.002
Dec ’23€27.80
€28.10
+1.1%
3.6%€29.10€27.09€22.802
Nov ’23€28.80
€28.10
-2.4%
3.6%€29.10€27.09€21.802

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

Discover undervalued companies

Eurobank Ergasias Services and Holdings

€7.6b

Provides retail banking, corporate and private banking, asset management, treasury, capital market, and other services primarily in Greece, rest of Europe, and internationally.

EFGD

€2.02

7D

1.3%

1Y

23.9%

UniCredit

€55.2b

Provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe.

CRIN

€36.07

7D

-5.1%

1Y

46.1%

Société Générale Société anonyme

€20.4b

Provides banking and financial services to individuals, corporates, and institutional clients in Europe and internationally.

SGE

€25.43

7D

-2.8%

1Y

12.9%