German American Bancorp, Inc.

DB:GAB Stock Report

Market Cap: €1.3b

German American Bancorp Valuation

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

Below Fair Value: GAB (€41.2) is trading below our estimate of fair value (€84.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GAB. This is calculated by dividing GAB's market cap by their current earnings.
What is GAB's PE Ratio?
PE Ratio16.6x
EarningsUS$82.11m
Market CapUS$1.34b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.4x
PCZ ProCredit Holding
4.2x9.9%€450.0m
1578 Bank of Tianjin
2.4xn/aHK$9.9b
601860 Jiangsu Zijin Rural Commercial BankLtd
6.4xn/aCN¥10.4b
8377 Hokuhoku Financial Group
8.5x14.5%JP¥217.7b
GAB German American Bancorp
16.6x22.4%€1.3b

Price-To-Earnings vs Peers: GAB is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (5.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GAB 16.6xIndustry Avg. 7.4xNo. of Companies46PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GAB is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the European Banks industry average (7.4x).

Price to Earnings Ratio vs Fair Ratio

What is GAB'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.

GAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.6x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: GAB is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).

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 GAB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€41.20
€45.38
+10.2%
7.7%€51.24€40.80n/a6
Nov ’25€37.00
€41.13
+11.2%
4.8%€44.20€38.67n/a6
Oct ’25€34.60
€38.85
+12.3%
2.1%€39.75€37.94n/a5
Sep ’25€35.80
€39.20
+9.5%
2.7%€40.30€37.55n/a5
Aug ’25€36.20
€38.55
+6.5%
7.2%€40.77€33.36n/a5
Jul ’25€32.60
€32.35
-0.8%
3.3%€34.00€31.24n/a5
Jun ’25€29.20
€32.45
+11.1%
3.3%€34.11€31.34n/a5
May ’25€29.60
€33.67
+13.8%
2.0%€34.61€32.74n/a4
Apr ’25€31.00
€34.08
+9.9%
4.1%€36.42€32.68n/a4
Mar ’25€29.00
€34.08
+17.5%
4.1%€36.42€32.68n/a4
Feb ’25€30.60
€32.43
+6.0%
8.1%€35.88€28.52n/a4
Jan ’25€29.60
€29.64
+0.1%
4.4%€31.49€28.72n/a3
Dec ’24€26.20
€28.27
+7.9%
1.5%€28.58€27.66n/a3
Nov ’24€25.60
€30.05
+17.4%
4.1%€31.23€28.39€37.004
Oct ’24€25.60
€30.04
+17.4%
4.1%€31.22€28.39€34.604
Sep ’24€26.60
€29.42
+10.6%
2.5%€29.99€28.17€35.804
Aug ’24€26.60
€29.71
+11.7%
4.5%€31.87€28.23€36.204
Jul ’24€25.20
€30.56
+21.3%
4.5%€32.66€28.93€32.604
Jun ’24€25.60
€30.56
+19.4%
4.5%€32.66€28.93€29.204
May ’24€26.20
€30.38
+16.0%
3.7%€31.90€29.17€29.603
Apr ’24€30.00
€35.76
+19.2%
5.5%€37.59€33.01€31.003
Mar ’24€36.80
€38.12
+3.6%
1.8%€39.17€37.31€29.004
Feb ’24€35.20
€37.21
+5.7%
1.8%€38.23€36.41€30.604
Jan ’24€34.80
€40.58
+16.6%
2.7%€41.95€38.96€29.604
Dec ’23€38.00
€40.58
+6.8%
2.7%€41.95€38.96€26.204
Nov ’23€39.40
€40.62
+3.1%
2.8%€42.52€39.48€25.604

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

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