Banco de Sabadell, S.A.

DB:BDS Stock Report

Market Cap: €9.9b

Banco de Sabadell Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: BDS (€3.54) is trading below our estimate of fair value (€7.66)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BDS. This is calculated by dividing BDS's market cap by their current earnings.
What is BDS's PE Ratio?
PE Ratio6.7x
Earnings€1.48b
Market Cap€9.91b

Price to Earnings Ratio vs Peers

How does BDS's PE Ratio compare to its peers?

The above table shows the PE ratio for BDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6.6x
CBK Commerzbank
8x8.8%€17.3b
PCZ ProCredit Holding
4.3x10.7%€471.2m
MBK Merkur PrivatBank KgaA
10.2x8.6%€107.3m
2016 China Zheshang Bank
3.8x10.2%HK$78.7b
BDS Banco de Sabadell
6.7x-2.4%€9.9b

Price-To-Earnings vs Peers: BDS is expensive based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (6.6x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BDS 6.7xIndustry Avg. 7.3xNo. of Companies47PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BDS is good value based on its Price-To-Earnings Ratio (6.7x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is BDS'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.

BDS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ratio9.7x

Price-To-Earnings vs Fair Ratio: BDS is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).

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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