Aozora Bank Valuation

Is AON0 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-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AON0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AON0 (€3.68) is trading below our estimate of fair value (€4.43)

Significantly Below Fair Value: AON0 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AON0?

Key metric: As AON0 is an unprofitable bank we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for AON0. This is calculated by dividing AON0's market cap by their current book value.
What is AON0's PB Ratio?
PB Ratio	0.8x
Book	JP¥452.06b
Market Cap	JP¥350.93b

AON0 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does AON0's PB Ratio compare to its peers?

The above table shows the PB ratio for AON0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	0.6x
PCZ ProCredit Holding	0.4x	9.9%	€444.1m
CBK Commerzbank	0.6x	8.8%	€19.3b
UBK UmweltBank	0.9x	n/a	€223.5m
MBK Merkur PrivatBank KgaA	0.4x	8.6%	€111.2m
AON0 Aozora Bank	0.8x	70.5%	€350.9b

Price-To-Book vs Peers: AON0 is expensive based on its Price-To-Book Ratio (0.8x) compared to the peer average (0.6x).

Price to Book Ratio vs Industry

How does AON0's PB Ratio compare vs other companies in the European Banks Industry?

6 Companies	Price / Book	Estimated Growth	Market Cap

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: AON0 is good value based on its Price-To-Book Ratio (0.8x) compared to the European Banks industry average (0.8x).

Price to Book Ratio vs Fair Ratio

What is AON0's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AON0 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.8x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate AON0's Price-To-Book Fair Ratio for valuation analysis.

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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