Agricultural Bank of China Limited

DB:EK7 Stock Report

Market Cap: €227.1b

Agricultural Bank of China Valuation

Is EK7 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 EK7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EK7 (€0.51) is trading below our estimate of fair value (€1.74)

Significantly Below Fair Value: EK7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EK7?

Key metric: As EK7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EK7. This is calculated by dividing EK7's market cap by their current earnings.
What is EK7's PE Ratio?
PE Ratio5.3x
EarningsCN¥260.31b
Market CapCN¥1.73t

Price to Earnings Ratio vs Peers

How does EK7's PE Ratio compare to its peers?

The above table shows the PE ratio for EK7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.9x
CBK Commerzbank
8.5x8.9%€18.1b
WFC Wells Fargo
13.8x4.1%US$234.2b
3988 Bank of China
4.8x4.9%HK$1.5t
939 China Construction Bank
4.5x4.1%HK$1.6t
EK7 Agricultural Bank of China
5.3x5.6%€1.8t

Price-To-Earnings vs Peers: EK7 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (7.9x).

Price to Earnings Ratio vs Industry

How does EK7's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EK7 5.3xIndustry Avg. 7.6xNo. of Companies46PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EK7 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the European Banks industry average (7.6x).

Price to Earnings Ratio vs Fair Ratio

What is EK7'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.

EK7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.3x
Fair PE Ratio14.8x

Price-To-Earnings vs Fair Ratio: EK7 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).

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 EK7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.51
€0.54
+5.4%
14.4%€0.77€0.37n/a16
Dec ’25€0.46
€0.54
+17.8%
15.0%€0.75€0.37n/a17
Nov ’25€0.41
€0.52
+28.5%
15.1%€0.74€0.37n/a18
Oct ’25€0.38
€0.49
+31.1%
10.1%€0.61€0.36n/a18
Sep ’25€0.38
€0.48
+26.9%
12.7%€0.61€0.34n/a19
Aug ’25€0.38
€0.48
+27.7%
12.0%€0.57€0.34n/a19
Jul ’25€0.38
€0.48
+24.4%
12.2%€0.57€0.34n/a20
Jun ’25€0.35
€0.46
+28.9%
15.6%€0.57€0.26n/a20
May ’25€0.36
€0.45
+26.0%
16.0%€0.57€0.26n/a20
Apr ’25€0.34
€0.43
+27.7%
15.3%€0.54€0.26n/a20
Mar ’25€0.33
€0.42
+25.9%
14.5%€0.54€0.27n/a21
Feb ’25€0.31
€0.42
+34.3%
14.9%€0.54€0.27n/a22
Jan ’25€0.31
€0.41
+33.9%
14.4%€0.53€0.27n/a22
Dec ’24€0.29
€0.41
+41.3%
14.6%€0.54€0.27€0.4622
Nov ’24€0.31
€0.42
+33.6%
14.5%€0.54€0.27€0.4122
Oct ’24€0.32
€0.41
+27.7%
13.7%€0.54€0.29€0.3822
Sep ’24€0.35
€0.40
+15.7%
13.8%€0.52€0.29€0.3823
Aug ’24€0.29
€0.40
+36.6%
12.6%€0.51€0.29€0.3822
Jul ’24€0.33
€0.40
+22.9%
11.3%€0.51€0.31€0.3821
Jun ’24€0.31
€0.42
+32.3%
12.7%€0.53€0.30€0.3521
May ’24€0.32
€0.40
+27.6%
11.9%€0.53€0.30€0.3621
Apr ’24€0.31
€0.40
+29.8%
12.7%€0.54€0.31€0.3421
Mar ’24€0.30
€0.40
+34.8%
13.5%€0.54€0.31€0.3321
Feb ’24€0.30
€0.40
+35.5%
13.9%€0.54€0.30€0.3122
Jan ’24€0.28
€0.39
+40.9%
15.5%€0.54€0.29€0.3122
Dec ’23€0.27
€0.39
+43.2%
14.8%€0.53€0.29€0.2922

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 Analysis2024/12/23 03:43
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Agricultural Bank of China Limited is covered by 77 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Yu Hang AuABCI Securities Company Limited
Yi GuoAvic Securities Co., Ltd
Meizhi YanBarclays