Bank of Ireland Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: BIRG (€8.27) is trading below our estimate of fair value (€21.73)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BIRG. This is calculated by dividing BIRG's market cap by their current earnings.
What is BIRG's PE Ratio?
PE Ratio5.4x
Earnings€1.54b
Market Cap€8.31b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BIRG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11x
CBK Commerzbank
8x8.8%€17.1b
PCZ ProCredit Holding
4.4x10.7%€459.4m
MBK Merkur PrivatBank KgaA
10.1x8.6%€107.3m
BRIS Bank Syariah Indonesia
21.4x17.7%Rp134.2t
BIRG Bank of Ireland Group
5.4x-7.6%€8.3b

Price-To-Earnings vs Peers: BIRG is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (11x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BIRG 5.4xIndustry Avg. 7.2xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BIRG is good value based on its Price-To-Earnings Ratio (5.4x) compared to the European Banks industry average (7.2x).


Price to Earnings Ratio vs Fair Ratio

What is BIRG'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.

BIRG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio8.7x

Price-To-Earnings vs Fair Ratio: BIRG is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (8.7x).


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 BIRG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.27
€10.98
+32.7%
17.2%€14.10€7.75n/a11
Nov ’25€8.54
€11.30
+32.3%
15.0%€14.10€7.75n/a11
Oct ’25€9.42
€11.97
+27.1%
10.5%€14.60€10.00n/a11
Sep ’25€10.10
€12.01
+18.9%
9.9%€14.60€10.00n/a12
Aug ’25€10.43
€11.90
+14.1%
10.1%€14.60€10.00n/a12
Jul ’25€10.03
€11.85
+18.1%
9.9%€14.60€10.00n/a13
Jun ’25€10.32
€11.85
+14.9%
10.1%€14.60€10.00n/a13
May ’25€10.14
€11.65
+15.0%
13.1%€14.60€8.00n/a13
Apr ’25€8.97
€11.58
+29.0%
16.0%€16.22€8.00n/a13
Mar ’25€8.37
€11.48
+37.1%
18.0%€16.22€8.00n/a14
Feb ’25€8.46
€11.64
+37.6%
20.0%€16.22€7.00n/a14
Jan ’25€8.21
€12.02
+46.4%
15.9%€15.64€7.00n/a14
Dec ’24€8.63
€12.14
+40.8%
15.8%€15.64€7.00n/a14
Nov ’24€8.41
€12.35
+46.9%
15.5%€15.64€7.00€8.5414
Oct ’24€9.15
€12.49
+36.5%
15.3%€15.64€7.00€9.4214
Sep ’24€9.01
€12.64
+40.3%
15.2%€15.64€7.00€10.1015
Aug ’24€9.38
€12.53
+33.6%
15.7%€15.64€7.00€10.4315
Jul ’24€8.53
€12.23
+43.4%
14.4%€14.00€7.00€10.0315
Jun ’24€8.89
€12.22
+37.4%
14.0%€14.00€7.00€10.3215
May ’24€9.37
€12.11
+29.2%
14.2%€14.00€7.00€10.1415
Apr ’24€9.24
€11.96
+29.4%
14.9%€14.00€7.00€8.9715
Mar ’24€10.28
€10.93
+6.4%
14.7%€13.80€7.00€8.3715
Feb ’24€9.66
€10.42
+7.8%
12.2%€12.30€7.00€8.4613
Jan ’24€8.58
€9.77
+13.9%
15.1%€12.30€7.00€8.2112
Dec ’23€7.72
€9.58
+24.2%
16.6%€12.30€7.00€8.6312
Nov ’23€7.54
€8.67
+15.1%
17.7%€12.30€7.00€8.4113

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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