Close Brothers Group plc

DB:CS3 Stock Report

Market Cap: €841.1m

Close Brothers Group Valuation

Is CS3 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-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 CS3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

€7.11
Fair Value
20.5% undervalued intrinsic discount
9
Number of Analysts

Below Fair Value: CS3 (€5.65) is trading below our estimate of fair value (€7.11)

Significantly Below Fair Value: CS3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CS3?

Key metric: As CS3 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 CS3. This is calculated by dividing CS3's market cap by their current book value.
What is CS3's PB Ratio?
PB Ratio0.4x
BookUK£1.74b
Market CapUK£732.30m

Price to Book Ratio vs Peers

How does CS3's PB Ratio compare to its peers?

The above table shows the PB ratio for CS3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average0.6x
PCZ ProCredit Holding
0.5x17.92%€557.2m
UBK UmweltBank
0.4x49.22%€161.0m
MBK Merkur PrivatBank KgaA
0.4x7.85%€143.9m
CBK Commerzbank
1.1x13.08%€36.2b
CS3 Close Brothers Group
0.4x94.15%€732.3m

Price-To-Book vs Peers: CS3 is good value based on its Price-To-Book Ratio (0.4x) compared to the peer average (0.6x).

Price to Book Ratio vs Industry

How does CS3's PB Ratio compare vs other companies in the European Banks Industry?

5 CompaniesPrice / BookEstimated GrowthMarket Cap
CS3 0.4xIndustry Avg. 1.0xNo. of Companies26PB00.61.21.82.43+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: CS3 is good value based on its Price-To-Book Ratio (0.4x) compared to the European Banks industry average (1x).

Price to Book Ratio vs Fair Ratio

What is CS3'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.

CS3 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.4x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate CS3'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?

The above table shows the analyst CS3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.65
€5.84
+3.40%
13.16%€7.35€4.36n/a9
Sep ’26€5.35
€5.70
+6.58%
15.20%€7.06€4.28n/a9
Aug ’26€4.64
€5.22
+12.39%
19.39%€6.36€3.12n/a9
Jul ’26€4.22
€4.90
+16.01%
21.40%€6.45€3.17n/a10
Jun ’26€3.86
€4.98
+29.00%
21.40%€6.56€3.22n/a10
May ’26€3.76
€4.95
+31.76%
25.35%€7.03€3.16n/a10
Apr ’26€3.32
€5.06
+52.48%
25.35%€7.19€3.23n/a10
Mar ’26€3.82
€5.37
+40.54%
23.18%€7.20€3.00n/a9
Feb ’26€3.72
€5.36
+44.18%
23.50%€7.30€2.99n/a9
Jan ’26€2.96
€5.65
+90.78%
25.23%€7.48€3.01n/a9
Dec ’25€2.56
€5.72
+123.32%
23.81%€7.45€3.01n/a9
Nov ’25€2.66
€6.15
+131.22%
12.56%€7.35€5.16n/a9
Oct ’25€4.88
€6.32
+29.56%
10.60%€7.44€5.40€5.6010
Sep ’25€6.15
€6.60
+7.26%
13.03%€8.02€5.11€5.359
Aug ’25€6.00
€6.21
+3.56%
16.54%€7.95€4.42€4.649
Jul ’25€4.92
€6.21
+26.29%
16.54%€7.95€4.42€4.229
Jun ’25€5.50
€6.20
+12.71%
16.54%€7.93€4.41€3.869
May ’25€5.50
€6.32
+14.98%
19.94%€8.18€4.38€3.7610
Apr ’25€4.60
€6.28
+36.49%
20.76%€8.19€4.39€3.329
Mar ’25€4.35
€6.35
+45.99%
24.31%€8.93€4.38€3.829
Feb ’25€6.23
€11.00
+76.75%
16.31%€14.48€8.97€3.7210
Jan ’25€9.38
€11.62
+23.89%
13.75%€14.41€9.16€2.9610
Dec ’24€8.83
€11.76
+33.24%
13.96%€14.43€9.17€2.5610
Nov ’24€9.09
€11.92
+31.17%
8.76%€13.34€9.87€2.6610
Oct ’24€10.26
€12.09
+17.83%
7.22%€13.33€10.86€4.8810
€5.85
Fair Value
3.4% undervalued intrinsic discount
9
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/05 19:08
End of Day Share Price 2025/10/03 00:00
Earnings2025/07/31
Annual Earnings2025/07/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Close Brothers Group plc is covered by 22 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sarah SpikesArden Partners Plc.
Toni DangBarclays
Peter RichardsonBerenberg